United States (US) Retail Banking 2020 - Review, Forecasts, and Future Opportunities

This report explores trends in the US retail banking sector and offers insight into consumer preferences and behaviors. It highlights some of the most important data points available on the performance of the sector comparable to other markets, as well as the performance and perception of firms within the industry. New trends and innovations are also noted, as are the implications of COVID-19 for the sector.

Growth in the US retail banking sector has been strong over the past decade despite the significant impact of the global financial crisis. COVID-19 will significantly alter trajectories and forecasts in 2020, and mixed responses to the pandemic have led to a delay in the expected recovery. A V-shaped recovery is hoped for, although the likelihood of growth post-COVID-19 following similar trends and rates to those pre-COVID-19 is becoming less likely. Until 2020, economic growth in the US had been strong following pro-business tax cuts and a more favourable regulatory environment, despite the ongoing trade war with China and internal political tension. However, many of the benefits of such growth have failed to trickle down effectively, and infrastructure and investment plans have not been met.

Scope

• The top five providers of credit cards saw their share of the US market grow by only 1 percentage point (pp) over the review period, suggesting the entry of digital-only providers and fintech platforms has halted the progress and gains of the most dominant firms.
• JPMorgan and Wells Fargo have invested heavily in digital infrastructure, and consequently they tend to rank lowest with regards to user dissatisfaction on mobile channels.
• Compared to other advanced economies and the global average, US consumers are less open to offerings by digital-only providers, but are more inclined towards offerings by big tech companies.

Reasons to Buy

• Identify factors affecting growth prospects across the deposit, credit card, personal loan, and mortgage markets.
• Track competitor gains and losses in market share, as well as consumer perceptions of competitors’ performance.
• Learn about how channel preferences have evolved in recent years.
• Discover changes in attitudes towards digital-only banks.
• Explore the importance placed on the various attributes of financial service providers analyzed by age and income.