Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - North America

North America

In North America, specifically China, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income.
By the year 2024, the projected Net Interest Income is estimated to reach a substantial figure of US$70.83bn.
This growth is expected to continue with an annual growth rate (CAGR 2024-2029) of 8.96%.
Consequently, the market volume is predicted to expand to US$108.80bn by 2029.
When compared on a global scale, it is noteworthy that China will generate the highest amount of Net Interest Income.
In 2024 alone, China is projected to contribute a staggering US$2,426.0bn to the overall Net Interest Income.
This highlights the significant role played by China in the Traditional Retail Banking market sector.
In North America, traditional retail banking is facing increased competition from digital banks, leading to a shift in customer preferences and expectations.

Key regions: France, Brazil, Germany, United Kingdom, United States

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

Structure:
The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:
The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

Over the past few years, the Traditional Retail Banking market in North America has been experiencing significant changes and developments.

Customer preferences: Customers in North America are increasingly seeking convenience and efficiency in their banking services. This has led to a growing demand for digital banking solutions, such as online banking, mobile apps, and contactless payment options. Additionally, customers are placing a higher emphasis on personalized services and seamless omnichannel experiences.

Trends in the market: In the United States, the Traditional Retail Banking market is witnessing a trend towards branch consolidation and digital transformation. Many banks are optimizing their branch networks and investing in technology to enhance customer experience and streamline operations. Moreover, there is a rise in the adoption of fintech solutions and partnerships to cater to changing customer needs and preferences.

Local special circumstances: In Canada, the Traditional Retail Banking market is characterized by a relatively concentrated banking sector dominated by a few major players. As a result, competition is intense, and banks are focusing on innovation and customer-centric strategies to differentiate themselves in the market. Moreover, regulatory requirements and compliance standards play a significant role in shaping the banking landscape in the country.

Underlying macroeconomic factors: The macroeconomic environment in North America, including factors such as interest rates, economic growth, and regulatory policies, has a substantial impact on the Traditional Retail Banking market. For instance, changes in interest rates can influence borrowing and saving behaviors, affecting banks' profitability and lending activities. Economic growth and stability are also key drivers of consumer confidence and spending, which ultimately impact the demand for banking services. Additionally, regulatory developments and compliance requirements shape the competitive dynamics and operational practices of banks in the region.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.