Purpose-Driven Banking Global Market Report 2025

The purpose-driven banking market size has grown rapidly in recent years. It will grow from $56.05 billion in 2024 to $64.5 billion in 2025 at a compound annual growth rate (CAGR) of 15.1%. The growth in the historic period can be attributed to rising demand for convenient banking services, growing adoption of online and mobile banking, an increase in government-led financial inclusion initiatives, rising consumer preference for personalized banking experiences, and increasing middle-class income levels.

The purpose-driven banking market size is expected to see rapid growth in the next few years. It will grow to $111.6 billion in 2029 at a compound annual growth rate (CAGR) of 14.7%. The growth in the forecast period can be attributed to rising demand for digital payment solutions and mobile wallets, growing banking requirements of small and medium enterprises (SMEs), increasing adoption of open banking, a rising need for sustainable and green financial products, and higher customer expectations for omnichannel banking experiences. Key trends in the forecast period include innovations in cloud-based retail banking solutions, advancements in artificial intelligence (AI) for personalized services, integration of AI and machine learning in banking operations, investments in fintech partnerships and collaborations, and development of open banking and open finance ecosystems.

The increasing consumer demand for ethical banking practices is expected to drive the growth of the purpose-driven banking market in the coming years. Ethical banking practices refer to consumers choosing financial institutions that demonstrate transparency, social responsibility, and adherence to moral standards in their operations. This rise is driven by growing societal expectations for corporate integrity, particularly in the financial services sector. Purpose-driven banking meets this demand by implementing clear ethical policies, sustainable investment strategies, and transparent reporting that align with consumer values. For example, in 2023, according to the Governance Institute of Australia, a UK-based professional association, 76 percent of adults rated ethical behavior in banking, finance, and insurance as important or very important, up 2 points from the previous year. Therefore, the increasing consumer demand for ethical banking practices is driving the growth of the purpose-driven banking market.

Key companies operating in the purpose-driven banking market are focusing on advanced innovations such as sustainable banking cards to offer environmentally responsible financial solutions, enhance customer engagement, and expand their presence in the growing ethical finance segment. Sustainable banking cards are debit, credit, or rewards cards made from recycled materials designed to reduce plastic waste while maintaining full functionality. For instance, in September 2025, Bank Australia, an Australia-based customer-owned bank, introduced a new Visa debit card made from 100 percent recycled plastic, with 64 percent collected from coastal communities by Parley for the Oceans, a global environmental organization. The card incorporates multiple layers of recycled polyethylene terephthalate (PET) and recycled polyethylene terephthalate glycol (rPETG), includes tactile Braille dots for accessibility, and ensures traceable sourcing of all materials. Beyond reducing plastic waste, the card supports the bank’s sustainability commitments, including Benefit Corporation (B Corp) certification and net-zero operations.

In February 2023, Southern Bancorp, Inc., a US-based mission-driven Community Development Financial Institution (CDFI), acquired Premier Bank of Arkansas for an undisclosed amount. Through this acquisition, Southern Bancorp, Inc. aims to broaden access to mission-focused banking and economic development services in Northeast Arkansas by integrating Premier Bank of Arkansas branches in Jonesboro, Marion, and West Memphis, allowing more residents to benefit from expanded financial products, development programs, and community support initiatives. Premier Bank of Arkansas is a US-based community-focused bank providing financial services to individuals, businesses, and nonprofit organizations.

Major players in the purpose-driven banking market are Crédit Agricole S.A., DBS Bank Ltd., Svenska Handelsbanken AB (publ), Vancouver City Savings Credit Union, BancoSol S.A., Triodos Bank, Amalgamated Bank, Self-Help Credit Union, GLS Bank eG, Bank Australia Ltd., Sunrise Banks N.A., Oikocredit International, Beneficial State Bank, Ecology Building Society, RSF Social Finance, BlueOrchard Finance Ltd., Unity Trust Bank PLC, Charity Bank, Southern Bancorp Inc., EthikBank eG.

Europe was the largest region in the purpose-driven banking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in purpose-driven banking report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

The purpose-driven banking market research report is one of a series of new reports that provides purpose-driven banking market statistics, including the purpose-driven banking industry global market size, regional shares, competitors with the purpose-driven banking market share, detailed purpose-driven banking market segments, market trends, and opportunities, and any further data you may need to thrive in the purpose-driven banking industry. This purpose-driven banking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Purpose-driven banking refers to a financial approach in which banking institutions align their strategies and operations with social, environmental, and ethical objectives. It focuses on generating positive societal impact alongside financial performance. This approach integrates sustainability, corporate responsibility, and stakeholder engagement into core banking operations. Its adoption is growing globally as institutions respond to increasing demand for ethical and responsible financial practices.

The key service types of purpose-driven banking include retail banking, corporate banking, investment banking, wealth management, and other services. Retail banking provides financial services to individual customers, including deposits, loans, and payment solutions, while corporate and investment banking address the financial needs of businesses and institutional clients. Purpose-driven banking services are offered through channels such as online banking, mobile banking, branch banking, and others, and can be deployed on-premises or via cloud-based models. These services serve end-users including individuals, small and medium enterprises (SMEs), large corporates, non-profit organizations, and others.

The countries covered in the purpose-driven banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The purpose-driven banking market includes revenues earned by entities by providing services such as sustainable investment advisory, ethical lending, impact assessment consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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