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According to the retail banking analysis, Technavio’s market research analyst predicts the global retail banking market to grow at a CAGR of around 6% by 2020. Retail banking institutions require strong credit assessment capability, strong possessing capability, efficient documentation, skilled human resource, constant follow-up, and technological support to administer an extensive portfolio of retail credit products. These institutions provide credit to marginalized borrowers such as small and medium-scale enterprises that are unable to obtain funds from the other banking and financial institutions. With better monitoring capabilities and providing quicker access to credit, the retail banking market size is expected to increase during the forecast period.
One of the banking trends gaining grounds in this market is the growing focus on customer connectivity. Several retail banking institutions are aiming to seek accuracy in their operating models which will help in data-driven decision making related to pricing and risk strategies. The retail banking institutions are modifying their business processes to reduce operational costs, which may increase customers' expectations in different products and services. Also, the vendors are developing various customer retention strategies and approaches to extend their customer base.
During 2015, EMEA dominated the market and accounted for around 44% of the total market share. The retail banks in this region are aiming to improve the business models by making use of digital channels, adjustments in the customer proposition in the MSME and affluent segments, and reshaping the branch networks. The growing focus towards implementing secured financing techniques will boost the growth of retail banking in this region.
At present, the banks are focusing on consumer protection which has propelled them to formulate proper pricing models for each product and service. It is important for retails banks to have a competitive, risk-based and value-added pricing to retain their customers. The retail banking sector has huge growth potential for innovations in the developing countries where the bank-led financial inclusion model exists. These developments will open up new sources of revenue and new channels of profit for retail banks during the forecast period.
Upcoming trends such as the growing use of big data analytics are gaining popularity in the market as they provide a comprehensive analysis and useful insights about the customers. These analytical solutions perform predictive analysis, such as stochastic, simulation techniques, and what-if scenarios, that help the retail banks to evaluate different strategies and tactics and results in better-informed decision-making, leading to increased performance, reduced costs, better customer service, and profitability.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the retail banking market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Geographical segmentation
PART 07: Market drivers
PART 08: Impact of drivers
PART 09: Market challenges
PART 10: Impact of drivers and challenges
PART 11: Market trends
PART 12: Vendor landscape
PART 13: Key vendor analysis
PART 14: Appendix
PART 15: Explore Technavio
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