Market Size of US Retail Banking Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Retail Banking Market Analysis
The US retail banking market is expected to witness a CAGR of 4.49%, during the forecast period (2021-2026). The high level of household debt in the country is a direct outcome of a rise in domestic consumption, which has proved to be the driving force of the country's economic growth. The credit card balances outstanding was the fastest-growing credit segment. The rising disposable income in the United States contributes positively toward borrowers' enhanced confidence in repaying their loans.
Fee income is falling, driven by decreased retail spending, while non-performing loan ratios will increase - particularly for SMEs. In March 2020, the US government decided to waive all federal student loan interest to address this issue and protect both consumers' and lenders' interests until further notice. Government support, particularly low-cost funding, will help but ultimately can only mitigate the impact. For banks, the severity of losses will depend on whether lockdown restrictions on individuals and businesses can be lifted without a resurgence in cases, or whether businesses will be forced to declare bankruptcy and borrowers will default on their loans.
Most US retail banking brands have a lot to worry about on the digital front, with new tech competitors on the horizon, digital-first banks eating away at their margins, and continuously rising customer expectations. It is no longer good enough to deliver just basics, like online enrollment. Banks must take the next step in digital innovation to compete with fintechs and online banks.
