United Kingdom Retail Banking Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 43.72 Billion |
| Market Size (2029) | USD 46.55 Billion |
| CAGR (2024 - 2029) | 1.26 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
United Kingdom Retail Banking Market Analysis
The UK Retail Banking Market size is estimated at USD 43.72 billion in 2024, and is expected to reach USD 46.55 billion by 2029, growing at a CAGR of 1.26% during the forecast period (2024-2029).
Retail banking, also known as consumer banking, is the provision of services by a bank to individual consumers. Services offered include savings and checking accounts, mortgages, personal loans, and debit/credit cards. The United Kingdom retail banking sector is being transformed by a range of powerful forces. The economic environment continues to bring uncertainty, regulatory requirements are evolving, customers are demanding greater personalization combined with excellent customer service, and, at the same time, technological innovation is challenging traditional business and delivery models while ushering in a further set of challenging competitors.
The present scenario of the United Kingdom retail banking market post-COVID is characterized by a shift towards digital banking, increased focus on customer experience, and accelerated adoption of online and mobile banking services.
United Kingdom Retail Banking Market Trends
Increasing Deposits in Traditional Retail Banking
Increasing deposits in traditional retail banking can have several impacts on the United Kingdom retail banking market. Deposits in traditional retail banking have increased, which has resulted in a larger pool of funds available for lending. Banks are using these deposits to extend loans and credit facilities to individuals and businesses, stimulating economic growth. Increased liquidity has led to lower interest rates, borrowing more affordable, and encouraging investment and consumption. Deposits are a significant source of funding for banks. As deposits have grown, they improved their profitability and financial stability.
Increase in Usage of Digital Banks
Digital banks, also known as challenger banks, often have lower operating costs compared to traditional banks. This is allowing to offer more competitive interest rates on deposits and loans. As a result, customers are attracted to digital banks and is leading to a shift in market share from traditional banks to digital players. The rise of digital banks in United Kingdom has disrupted the traditional banking landscape. Traditional banks are now facing competition from agile and technology-driven challengers. To remain competitive, traditional banks are compelled to improve their digital offerings, invest in technology, and enhance customer experience. This lead to increased innovation and improved services in the retail banking market as a whole.
United Kingdom Retail Banking Industry Overview
The United Kingdom Retail Banking Market is consolidated. The report covers the major international players operating in the United Kingdom retail banking market. In terms of market share, a few of the major players currently dominate the market which include HSBC Bank PLC, Barclays PLC, Royal Bank of Scotland, Lloyds Banking Group, and Standard Chartered PLC. However, technological advancement and product innovation banks are increasing their market presence.
United Kingdom Retail Banking Market Leaders
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HSBC Bank PLC
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Barclays PLC
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Royal Bank of Scotland
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Lloyds Banking Group
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Standard Chartered PLC
*Disclaimer: Major Players sorted in no particular order
United Kingdom Retail Banking Market News
- In September 2023: United Kingdom-based Lloyds Bank partnered with United States-based provider of payments and financial services technology Fiserv. This partnership, Lloyds Bank has set the first financial institution that widely offers wholesale foreign exchange (FX) rates to United Kingdom and European merchants for dynamic currency conversion (DCC) on card transactions.
- In September 2023: HSBC partnered with Nova Credit, the first United Kingdom bank to offer newcomers access to overseas credit history.
UK Retail Banking Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Increase in Mortgage Loans is Driving the Market
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4.2 Market Restraints
- 4.2.1 Cyber Security Risks is Restraining the Market
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4.3 Market Opportunities
- 4.3.1 Increasing Adoption of Digital Banking will Create an Opportunity
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4.4 Porters Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Government Regulations and Industry Policies
- 4.6 Fintech Disruption in the United Kingdom Retail Banking Market
- 4.7 Strategic Considerations for Digital Transformation of the United Kingdom Retail Banks
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Product
- 5.1.1 Transactional Accounts
- 5.1.2 Savings Accounts
- 5.1.3 Debit Cards
- 5.1.4 Credit Cards
- 5.1.5 Loans
- 5.1.6 Other Products
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5.2 By Channel
- 5.2.1 Direct Sales
- 5.2.2 Distributor
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Mergers and Acquisitions
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6.3 Company Profiles
- 6.3.1 HSBC Holdings
- 6.3.2 Barclay's PLC
- 6.3.3 Royal Bank of Scotland
- 6.3.4 Lloyds Banking Group
- 6.3.5 Standard Chartered PLC
- 6.3.6 Santander UK
- 6.3.7 Nationwide Building Society
- 6.3.8 Schroders
- 6.3.9 Close Brothers
- 6.3.10 Coventry Building Society*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
United Kingdom Retail Banking Industry Segmentation
Retail banking, also known as consumer banking or personal banking, is the provision of services like having access to credit and depositing funds in a secure manner by a bank to the general public. The report covers United Kingdom bank's market share & statistics and it is segmented by product which includes transactional accounts, saving accounts, debit cards, credit cards, loans, and other products, and by channel includes direct sales and distributors. The report offers market size and forecasts for the United Kingdom retail banking market in terms of revenue (USD) for all the above segments.
| By Product | Transactional Accounts |
| Savings Accounts | |
| Debit Cards | |
| Credit Cards | |
| Loans | |
| Other Products | |
| By Channel | Direct Sales |
| Distributor |
UK Retail Banking Market Research Faqs
How big is the UK Retail Banking Market?
The UK Retail Banking Market size is expected to reach USD 43.72 billion in 2024 and grow at a CAGR of 1.26% to reach USD 46.55 billion by 2029.
What is the current UK Retail Banking Market size?
In 2024, the UK Retail Banking Market size is expected to reach USD 43.72 billion.
Who are the key players in UK Retail Banking Market?
HSBC Bank PLC, Barclays PLC, Royal Bank of Scotland, Lloyds Banking Group and Standard Chartered PLC are the major companies operating in the UK Retail Banking Market.
What years does this UK Retail Banking Market cover, and what was the market size in 2023?
In 2023, the UK Retail Banking Market size was estimated at USD 43.17 billion. The report covers the UK Retail Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Retail Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What factors are driving the growth of the UK Retail Banking Market?
The factors driving the growth of the UK Retail Banking Market are a) Increasing use of electronic devices, such as laptops and smartphones, along with growing internet connectivity, which allows easy access to banking systems b) Favorable government policies on personal loans, low interest rates, and better payment terms offered by companies
UK Retail Banking Industry Report
The UK Retail Banking Market is experiencing significant growth, driven by the increasing adoption of digital banking, the rise of smart technologies, and favorable government policies. The market is segmented by products, including transactional accounts, savings accounts, debit cards, credit cards, loans, and others, as well as by channels such as direct sales and distributors. Retail banking, also known as consumer banking, provides a range of services to individual customers, including savings and checking accounts, mortgages, personal loans, and debit/credit cards. The market's growth is propelled by customer expectations, new competitors, demographic changes, and shifting economics. The increasing use of electronic devices and internet connectivity has made banking more accessible, while advanced technologies like AI are enhancing personalized services. The market is highly competitive, with key players focusing on innovation and strategic partnerships to stay ahead. Trends such as the rise of digital-only banks and the growing popularity of credit cards and loans are shaping the market. Statistics for the UK retail banking market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports, provide a detailed market forecast outlook and historical overview. For an in-depth UK banking sector overview, including UK bank market share, get a sample of this industry analysis as a free report PDF download.
