Market Size of China Retail Banking Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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China Retail Banking Market Analysis
Retail banking in China has grown at breakneck speed in the last decade. Retail product offerings, the talent pool, channels, and infrastructure have all grown dramatically in scale and quality. Chinese banks are gearing up to seize back lost business in consumer loans from fintech players like Ant Group, emboldened by a regulatory sea change that is making them more competitive while more hurdles are created for their online rivals. The new rules, which come on the back of Beijing's shock canning of Ant's USD 37 billion IPO in November 2020, include the scrapping of limits on credit card interest rates and plans to greatly restrict the consumer data collection that has enabled the rapid growth of online lending platforms.
As of January 1, 2021, Chinese banks are no longer obligated to set daily compounding interest rates for credit cards between 0.035% and 0.050%. Some banks now plan to lower rates or even undercut online lending rates, while others are looking at accepting higher-risk clients by charging them higher rates. The changes will guide more clients to the banking system, especially to local banks.
In 2020, the pandemic brought significant shocks to China's economic activities. The Chinese listed banks' success in navigating the operational disruption caused by the pandemic in 2020 is partly because they have continuously driven digital transformation and made steady progress over recent years.
