Retail Banking Regional Report: Americas 2024

This report analyzes the key financials, competitive landscape, and drivers of relationship depth in retail banking markets in the Americas.

Following significant rate rises by central banks across the region, banks have benefited from stronger net interest margins (NIM) and heightened return on assets (RoA). Consumer expectations for better deposit rates, accompanied by pressure from money markets and digital challenger rates, will test banks on funding costs in the US and Canada. Lending growth in LatAm, particularly in Mexico and Brazil, has supported high revenue growth across the region, although impairments remain a moderate risk in the region as economic growth slows and inflation remains sticky.

Scope

• Net interest income in Brazil (top five players) increased by 58% over 2014-22, with operating costs up 35%.
• Major US banks grew net interest income by 19% in 2022 as loan costs outstripped deposit costs following hikes in the fed funds rate and low deposit betas.
• Over 20% of Brazilian consumers prefer to open a current account with a digital-only bank, the highest proportion in the region by some distance.
• More than a third of US and Canadian consumers’ financial goal is to ensure financial independence at retirement.

Reasons to Buy

• Assess the recent and future macroeconomic impact on the retail banking sector in the Americas.
• Determine the competitive landscape of key markets in the region as well as drivers behind the emergence of new players.
• Examine the strength of banks’ relationships with their customers across markets in the Americas.
• Ascertain reasons for satisfaction across the region and identify strategies to improve the banking relationship with consumers.