PUBLISHER: The Business Research Company | PRODUCT CODE: 1733578
PUBLISHER: The Business Research Company | PRODUCT CODE: 1733578
Retail banking refers to the provision of financial services by banks and financial institutions to individual consumers rather than businesses or institutions. It is a critical component of the banking industry, catering to the financial needs of individuals through various deposit, lending and transactional services.
The retail banking market consists of sales by entities (organizations, sole traders and partnerships) of retail banking services that encompasses a wide range of financial products, including savings and checking accounts, personal loans, home loans, mortgages, debit and credit cards and certificates of deposit. These services are designed to facilitate the day-to-day financial activities of individuals, helping them manage their money, build savings, access credit and make transactions efficiently.
The global retail banking market was valued at $2,398,887.45 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 7.00%.
Growth In Mobile Banking Usage
The growth in mobile banking usage supported the growth of the retail banking market during the historic period. Mobile banking expands a bank's reach, allowing access to customers in remote areas where physical branches are scarce. This digital approach enhances customer acquisition by enabling more individuals to open and manage accounts online. Additionally, it lowers operational costs by reducing reliance on physical branches and staff, allowing banks to allocate resources more strategically. For instance, in April 2022, according to a survey of 1,002 American adults conducted by MX Technologies, a US-based fintech company, 68% of users use mobile apps to access or manage their accounts, with younger generations showing higher usage rates. Additionally, 72% of respondents prefer to handle their accounts online or via mobile apps. Among different age groups, millennials prefer online and mobile, at 89%, followed by Gen Z, at 84%. Therefore, the growth in mobile banking usage drove the growth of the retail banking market.
Revolutionizing Retail Banking With Triple-Layer AI
Companies operating in the retail banking market are advancing triple-layer AI-banking platforms to enhance customer experience, automation and decision-making. These platforms integrate Predictive AI for behavior analysis, Generative AI for personalized recommendations and Autonomous AI for real-time assistance, enabling banks to offer seamless, data-driven and efficient banking services. For instance, in February 2025, BUSINESSNEXT is an India-based digital-first enterprise solutions provider launched retail banking customer 360 platform. This innovative platform integrates Predictive AI (Artificial Intelligence), Generative AI and Autonomous AI agents to deliver a seamless and enhanced retail banking experience. Predictive AI forecasts customer behavior and preferences, while Generative AI creates personalized content and recommendations. Autonomous AI agents automate tasks and offer real-time assistance, improving efficiency. The platform provides a unified, real-time view of customer interactions, product holdings and transaction history, enabling banks to analyze behavior and deliver tailored services. Additionally, AI-powered insights, alerts and next-best actions help boost customer engagement and sales opportunities.
The global retail banking market is fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 7.84% of the total market in 2023.
Retail Banking Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global retail banking market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for retail banking? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The retail banking market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider retail banking market; and compares it with other markets.