Americas Regional Retail Banking Analysis by Country, Consumer Credit, Retail Deposits and Residential Mortgages, 2023

Americas Regional Retail Banking Analysis Report Overview

Economies in America are expected to grow very slowly in the coming years. The raising of interest rates in response to inflation will have a delayed effect. The low-interest rate environment in North American markets has kept net interest margins low and falling. However, rising interest rates in Brazil and Mexico have not done much to improve the net interest margins experienced in those markets either.

The Americas regional retail banking analysis report analyzes the Americas retail banking sector from a comparative perspective, highlighting key similarities and differences across markets within the region. The largest banks in each market are discussed alongside macroeconomic forecasts, giving a feel for the composition of a given country’s economy and retail banking sector. The report also examines product holding across key banking, insurance, and investment products.

Americas Retail Banking Market Dynamics

Argentina has the highest and most volatile inflation rate in the American region contributing to its lack of GDP growth since 2015, which is projected to remain slow through to 2025. Argentina has also experienced fiscal and public debts, dragging its debt-to-GDP ratio up and slowing growth even more. Argentina’s high inflation can be pinned to the rapid money supply expansion in the economy to support government spending, as well as elevated food prices and energy costs.

Localized or national lockdowns during the COVID-19 pandemic caused mass job losses in countries with already high unemployment rates. Unemployment in all South American countries will fall or remain level through 2025 as economies look to rebuild themselves after prolonged recession periods, leading to more employment opportunities in the long run.

Americas Retail Banking Market Segmentation by Countries

Some of the key countries discussed in the Americas regional retail banking market report are Peru, Colombia, Chile, Mexico, Brazil, Canada, the US, and Argentina. The US has the highest GDP in 2023. The Peru Trade Promotion Agreement (2009) reduced and even eliminated tariffs on several Peruvian exports to the US. This has allowed Peru to grow its GDP in recent years and even top the projections for the CAGR up to 2025. The agreement also encouraged foreign direct investment into Peru, as companies now have property rights and protection, which was absent before.

Americas Retail Banking Market Analysis by Countries, 2023 (%)

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Americas Retail Banking Market Segmentation by Channel Usage

The key channels used in the Americas retail banking market are mobile, online, branch, and telephone. Telephone usage is significantly lower than the usage of other channels in all countries except Peru and Brazil. Canada is notable for the stark contrast in online banking usage compared to mobile as well as branch usage compared to telephone. Online usage in Canada is much greater than mobile usage, while the branch is more popular compared to the telephone.

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Americas Retail Banking Market Competitive Analysis

Some of the major banks in the Americas’ retail banking market are Bank of America, JPMorgan Chase, Wells Fargo, TD Canada Trust, RBC, Banco do Brazil and Scotiabank. Bank of America had the largest number of assets in the region in 2021. Banco Bradesco grew the most during 2011-2021. Notably, the banks filling the top 30 competitor list for TDA come from the countries with the largest populations. This highlights the challenges faced by banks in smaller countries when trying to expand beyond their domestic country and into the wider region.

Americas Retail Banking Market Analysis by Banks, 2021 (%)

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Segments Covered in the Report

Americas Retail Banking Market Country Outlook (Value, 2015-2025)

• Peru
• Colombia
• Chile
• Mexico
• Brazil
• Canada
• US
• Argentina

Americas Retail Banking Market Channel Outlook (Value, 2015-2025)

• Mobile
• Online
• Branch
• Telephone

Scope

• Bank of America, JPMorgan Chase, and Wells Fargo in the US are the three largest banks in the region in terms of total divisional assets.

• On average, the Americas’ retail deposits and residential mortgages markets are as concentrated now as they were five years ago.

• High barriers for entry and growing confidence in the large players in the Brazilian banking sector have made it difficult for foreign and smaller providers to break into the consumer market. However, with the emergence of successful digital providers such as Nubank, the country’s retail deposits market concentration has fallen from 92% in 2016 to 82% in 2021.

Key Highlights

• Bank of America, JPMorgan Chase, and Wells Fargo in the US are the three largest banks in the region in terms of total divisional assets.
• On average, the Americas’ retail deposits and residential mortgage markets are as concentrated now as they were five years ago.
• High barriers for entry and growing confidence in the large players in the Brazilian banking sector have made it difficult for foreign and smaller providers to break into the consumer market.

Reasons to Buy

• Keep up to date with the macroeconomic trends impacting the retail banking sector in the Americas.
• Understand where the best opportunities lie by comparing countries based on factors ranging from average net interest margin to market concentration.
• Develop an understanding of the differences between consumers’ research methods, average tenure, and channel usage across different countries in the region.