Retail Banking Market Dynamics: US 2018

Retail Banking Market Dynamics: US 2018

Summary

Between 2013 and 2017 bank margins and profits in the US remained consistently higher than in Canada and the UK. However, cost/income ratios remained higher in the US. Growth in retail deposits, credit card balances, and personal loan balances grew strongly over the same period. Growth in residential mortgage balances was more subdued as activity in the housing market stalled. Despite positive macroeconomic conditions, credit card balances will grow at a significantly slower pace over the forecast period. US digital-only banks are increasingly offering highly competitive unsecured loans to credit card holders, enabling them to consolidate outstanding debt and reduce servicing costs.

This report identifies macroeconomic and competitive dynamics that impact upon the US retail banking market.

Insights Provided

• The outlook for deposits, credit cards, personal loans, and mortgages.


• Net changes in market share across all four product areas.


• Overall financial performance including profitability, efficiency, and income sources.

Scope

• Capital One was the only major credit card and personal loan issuer to increase its market share in 2017.


• Mortgage balances are expected to record a compound annual growth rate of 3.6% over 2018-22.


• Retail deposits are expected to record a compound annual growth rate of 4.8% over 2018-22.

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.


• Assess the financial performance of competitors.