Please Wait.....
Report
US Retail Banking - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-02-09 I 180 Pages I Mordor Intelligence
US Retail Banking Market Analysis
The United States retail banking market was valued at USD 870 billion in 2025 and estimated to grow from USD 906.3 billion in 2026 to reach USD 1,112.2 billion by 2031, at a CAGR of 4.17% during the forecast period (2026-2031). Steady loan demand, a resilient deposit base, and the rapid consumer shift to digital banking support growth. Banks are expanding fee-free mobile products to match evolving customer expectations while using artificial intelligence to trim operating costs and launch new services quickly. Competitive pressure from specialist fintech firms is compressing interest margins, yet national institutions continue to leverage scale to defend profitability. Regulatory developments around overdraft fees and fair-lending standards are forcing banks to diversify revenue streams into advisory-led products and subscription models.
US Retail Banking Market Trends and Insights
Rising Household Debt Fueling Loan Demand
Household debt reached USD 18.20 trillion in Q1 2025, a 0.9% quarterly rise, and mortgage balances alone expanded by USD 199 billion. Despite restrictive monetary policy, consumers continue borrowing for housing, autos, and education, encouraged by credit scoring models that better gauge repayment capacity. Banks are deploying machine-learning risk tools to extend loans to underserved borrowers without materially elevating default ratios. The United States retail banking market is therefore leveraging this debt upswing to widen net interest income while growing ancillary insurance and advisory offerings tied to credit products.
Surge in Mobile-Wallet Adoption Among Gen Z Accelerating Digital Account Openings
The number of digital wallet users worldwide is expected to witness significant growth during the forecast period. Gen Z customers exhibit three times higher adoption of alternative payments than older cohorts, prioritizing biometric authentication and instant onboarding. Leading banks now approve and fund checking accounts within minutes, gaining early influence over the financial lives of digital natives. The intensifying preference for mobile deposits and person-to-person payments is raising the digital share of new retail accounts, reinforcing the omni-channel pivot of the United States retail banking market.
Fintech-Driven Rate Compression Squeezing Net-Interest Margins
Fast-growing digital lenders deliver lean cost structures and algorithmic pricing, enabling higher deposit yields and lower loan rates. Traditional banks must match offers or risk share erosion, yet this response narrows spreads and limits profit growth. The constraint is most severe in metropolitan areas where fintech adoption is highest and where interest-sensitive households move balances quickly through online channels.
Other drivers and restraints analyzed in the detailed report include:
Competitive Deposit Rates Amid Fed Tightening Boosting Savings BalancesEmbedded-Finance Retail Partnerships Expanding Point-of-Sale Credit Card IssuanceProposed CFPB Overdraft-Fee Caps Threatening Non-Interest Income
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Loans accounted for 29.18% of the United States retail banking market share in 2025, reflecting robust mortgage and auto demand. The United States retail banking market size tied to credit cards is projected to rise at a 6.27% CAGR to 2031 as issuers roll out experiential rewards and instant virtual provisioning. Rapid uptake of flexible repayment plans and early wage access features is keeping revolving balances buoyant even with elevated interest rates. Transactional accounts remain foundational for customer retention, yet growth moderates as multi-banking becomes mainstream. Savings products enjoy renewed appeal where digital-only players advertise yields above 2%, though margin pressures cap long-run contribution.
The Consumer Financial Protection Bureau has cautioned consumers about retail-store card costs that exceed those of general-purpose cards, spurring issuers to introduce clearer pricing disclosures. Debit cards continue to dominate day-to-day payments but lose relative share to mobile wallets and contactless credit. Banks are therefore designing integrated ecosystems that let users move seamlessly among checking, saving, pay-later, and credit card functions within a single application.
Online banking captured 58.10% of the United States retail banking market in 2025. Lower cost per transaction, estimated at cents rather than dollars, reinforces further migration. Mobile log-ins account for three-quarters of digital traffic, led by peer-to-peer payments and mobile check deposits. The United States retail banking market size tied to branch networks remains relevant for complex advice, yet branch formats are shifting toward lounge-style consultative hubs rather than traditional teller lines.
AI-powered chatbots handle routine queries around the clock, and voice recognition tools authenticate clients in seconds, lifting customer satisfaction scores. Banks blend channels by allowing video appointments scheduled in-app and concluded in branches, an approach that retains the trust advantage of human counsel while preserving digital convenience. Compliance standards require documented consent across channels, making robust data synchronization an operational imperative.
The US Retail Banking Market is Segmented by Product (Transactional Accounts, Savings Accounts, and More), by Channel (Online Banking and Offline Banking), by Customer Age Group (18-28 Years, 29-44 Years, and More), by Bank Type (National Banks, Regional Banks, and Neobanks & Others). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
JPMorgan Chase & Co. Bank of America Corp. Wells Fargo & Co. Citigroup Inc. U.S. Bancorp Truist Financial Corp. PNC Financial Services Group Inc. TD Group US Holdings LLC Capital One Financial Corp. Fifth Third Bancorp KeyCorp Regions Financial Corp. Citizens Financial Group First Citizens BancShares Synchrony Financial Ally Financial Inc. Discover Financial Services SoFi Technologies Inc. Chime Financial Inc. Navy Federal Credit Union
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Household Debt Fueling Loan Demand
4.2.2 Surge in Mobile-Wallet Adoption Among Gen Z Accelerating Digital Account Openings
4.2.3 Competitive Deposit Rates Amid Fed Tightening Boosting Savings Balances
4.2.4 Embedded-Finance Retail Partnerships Expanding Point-of-Sale Credit Card Issuance
4.2.5 FHA Policy Updates Stimulating First-Time-Homebuyer Mortgage Growth
4.2.6 Cloud-Native Core Upgrades Enabling Faster Product Launch Cycles
4.3 Market Restraints
4.3.1 Fintech-Driven Rate Compression Squeezing Net-Interest Margins
4.3.2 Proposed CFPB Overdraft-Fee Caps Threatening Non-Interest Income
4.3.3 Branch-Rationalization Costs Limiting Rural Reach
4.3.4 Rising Cyber-Fraud Driving Compliance Spend & Slowing Digital Rollouts
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
5 Market Size & Growth Forecasts (Value)
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 Channel
5.2.1 Online Banking
5.2.2 Offline Banking
5.3 By Customer Age Group
5.3.1 18-28 Years
5.3.2 29-44 Years
5.3.3 45-59 Years
5.3.4 60 Years and Above
5.4 By Bank Type
5.4.1 National Banks
5.4.2 Regional Banks
5.4.3 Neobanks & Others
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
6.4.1 JPMorgan Chase & Co.
6.4.2 Bank of America Corp.
6.4.3 Wells Fargo & Co.
6.4.4 Citigroup Inc.
6.4.5 U.S. Bancorp
6.4.6 Truist Financial Corp.
6.4.7 PNC Financial Services Group Inc.
6.4.8 TD Group US Holdings LLC
6.4.9 Capital One Financial Corp.
6.4.10 Fifth Third Bancorp
6.4.11 KeyCorp
6.4.12 Regions Financial Corp.
6.4.13 Citizens Financial Group
6.4.14 First Citizens BancShares
6.4.15 Synchrony Financial
6.4.16 Ally Financial Inc.
6.4.17 Discover Financial Services
6.4.18 SoFi Technologies Inc.
6.4.19 Chime Financial Inc.
6.4.20 Navy Federal Credit Union
7 Market Opportunities & Future Outlook
7.1 White-Space & Unmet-Need Assessment
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security