China Retail Banking Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
China Retail Banking Market Analysis
Retail banking in China has grown at breakneck speed in the last decade. Retail product offerings, the talent pool, channels, and infrastructure have all grown dramatically in scale and quality. Chinese banks are gearing up to seize back lost business in consumer loans from fintech players like Ant Group, emboldened by a regulatory sea change that is making them more competitive while more hurdles are created for their online rivals. The new rules, which come on the back of Beijing's shock canning of Ant's USD 37 billion IPO in November 2020, include the scrapping of limits on credit card interest rates and plans to greatly restrict the consumer data collection that has enabled the rapid growth of online lending platforms.
As of January 1, 2021, Chinese banks are no longer obligated to set daily compounding interest rates for credit cards between 0.035% and 0.050%. Some banks now plan to lower rates or even undercut online lending rates, while others are looking at accepting higher-risk clients by charging them higher rates. The changes will guide more clients to the banking system, especially to local banks.
In 2020, the pandemic brought significant shocks to China's economic activities. The Chinese listed banks' success in navigating the operational disruption caused by the pandemic in 2020 is partly because they have continuously driven digital transformation and made steady progress over recent years.
China Retail Banking Market Trends
This section covers the major market trends shaping the China Retail Banking Market according to our research experts:
Technology and Digitalization Trends are Driving the Market
China continues to be a world leader in e-commerce, digital payments, and digital banking. Since the outbreak of COVID-19, the banking sector in mainland China has significantly increased its focus and efforts on digital transformation. The banks that invested more heavily in technology and digitalization in the last couple of years are already starting to emerge as winners, as they were less impacted by the pandemic and better positioned to service their clients through digital channels and improve customer access and experience. In addition, many banks are increasingly leveraging fintech and emerging technologies, such as AI, data, cloud, and blockchain to transform their operating model enterprise-wide, increasing productivity and efficiency.
The Chinese government is also strongly promoting the digital economy. China is already essentially a cashless economy, with a large share of payments conducted through mobile phones and e-payment platforms such as WeChat Pay and Alipay. Recently, the People's Bank of China launched a pilot of its own China Central Bank Digital Currency - the first in the world. The banking sector will need to step up its digital transformation efforts to adapt to the New Reality, maintain competitiveness and ensure long-term growth.
Retail Banking at the Listed Banks acted as a New Engine Driving Profit Growth in 2020
The Chinese banks have generally focused on retail banking in pursuit of strategic development. They tried to capture the leading positions in wealth management, private banking, and other business areas by driving the digital transformation of retail business through differentiated measures.
As of 31 December 2020, the total operating income of the listed banks' retail business amounted to RMB 2,146.26 billion, growing by RMB 233.08 billion, or 12.18%, from 2019. The growth rate of the total operating income from the retail business of large commercial banks, national joint-stock commercial banks, city commercial banks, and rural commercial banks was 13.16%, 9.61%, 11.56%, and 7.58%, respectively, all higher than the growth rate in total operating income.
The proportions of operating income and profit before tax from the retail business of rural commercial banks increased significantly in 2020, while city commercial banks continued to rely more on corporate business or financial market business to generate profits.
China Retail Banking Industry Overview
The report covers major international players operating in the Chinese retail market industry. In terms of market share, few major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.
China Retail Banking Market Leaders
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Postal Savings Bank of China
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BNP Paribas China
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Citibank China
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HSBC Bank China
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Bank of China
*Disclaimer: Major Players sorted in no particular order
China Retail Banking Market News
July 2021 - BNP Paribas announced that it had received all necessary approvals and completed the acquisition of 100% of Exane, thus raising its stake from the 50% previously held during a successful 17-year partnership.
May 2020 - HSBC Insurance (Asia) Limited, an indirect wholly-owned subsidiary of HSBC Holdings plc ('HSBC'), has announced that it has entered an agreement to acquire the remaining 50% equity interest in HSBC Life Insurance Company Limited ('HSBC Life China'), its life insurance joint venture in China, from The National Trust Limited ('NT').
China 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 INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Trends Shaping the Chinese Retail Banking Market
4.6 Consumer Behaviour and Loyality Analysis
4.7 Government Regulations
4.8 Porter's Five Forces Analysis
4.9 Industry Value Chain Analysis
4.10 Challenges of the China Retail Banking Market
4.11 FinTech in Retail Banking
4.12 Social Media Channels for Better Market Penetration
4.13 Recent Developments in the Market
4.14 Impact of COVID-19 on market
5. MARKET SEGMENTATION
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
5.2 By Industry
5.2.1 Hardware
5.2.2 Software
5.2.3 Services
5.3 By Channel
5.3.1 Direct Sales
5.3.2 Distributor
6. COMPETITIVE LANDSCAPE
6.1 Postal Savings Bank of China
6.2 BNP Paribas China
6.3 Citibank China
6.4 HSBC Bank China
6.5 Bank of China
6.6 China Merchants Bank
6.7 China Development Bank
6.8 China Construction Bank Corp
6.9 Agriculture Bank of China
6.10 Bank of Communications *
7. INVESTMENT ANALYSIS ON THE CHINA RETAIL BANKING MARKET
8. FUTURE OF THE CHINA RETAIL BANKING MARKET
China Retail Banking Industry Segmentation
A complete background analysis of the Chinese Retail Banking Market includes an assessment of the parental market and emerging trends by segments and regional markets. Significant changes in market dynamics and market overview are covered in the report.
| By Product | |
| Transactional Accounts | |
| Savings Accounts | |
| Debit Cards | |
| Credit Cards | |
| Loans | |
| Other Products |
| By Industry | |
| Hardware | |
| Software | |
| Services |
| By Channel | |
| Direct Sales | |
| Distributor |
China Retail Banking Market Research FAQs
What is the current China Retail Banking Market size?
The China Retail Banking Market is projected to register a CAGR of 10% during the forecast period (2024-2029)
Who are the key players in China Retail Banking Market?
Postal Savings Bank of China, BNP Paribas China, Citibank China, HSBC Bank China and Bank of China are the major companies operating in the China Retail Banking Market.
What years does this China Retail Banking Market cover?
The report covers the China Retail Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Retail Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Retail Banking Industry Report
Statistics for the 2024 China Retail Banking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Retail Banking analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
