General Banking and Financial Services Market

General Banking and Financial Services Market Overview

The global General Banking and Financial Services Market size was valued at USD XX billion in 2022 and is predicted to reach USD XX billion by 2030 with a CAGR of XX% from 2024-2030.

The general banking and financial services market also known as banking and financial industry includes a range of financial activities aimed at managing and protecting money. It covers basic banking services such as savings accounts, loans, and mortgages. The market also includes investment services such as brokerage accounts and asset management. 

Insurance services, that provide protection against risks, are a key component, offering products including life, health, and property insurance. Additionally, it involves financial planning and advisory services to help people and businesses manage their finances. Overall, this market plays a crucial role in ensuring financial stability, facilitating investments, and providing protection from financial risks.

Market Dynamics and Trends

The worldwide expansion of the insurance sector drives the growth of the general banking and financial services market by enhancing financial security and fostering economic growth. As insurance coverage broadens, it stimulates demand for a variety of financial products and services, promotes innovation, and creates cross-selling opportunities, contributing to the overall growth of the financial services market. 

As per the Organization for Economic Cooperation and Development, in 2023, the non-life insurance sector saw a 6.2% increase in gross premiums written, while gross claims paid grew by 6.3%. Such surge in the insurance sector is advancing financial stability and driving the overall growth of the financial services market.

Moreover, the rapid advancement of technology, particularly in digital banking software and fintech solutions, drives general banking and financial services industry growth by enhancing operational efficiency, improving customer experiences, and enabling the development of innovative financial products and services. 

For instance, in January 2024, Insurity launched a new AI-powered analytics tool aimed at improving decision-making for property and casualty (P&C) insurance carriers. This advanced solution uses AI and machine learning to enhance predictive analytics and modeling, leading to better insights into loss ratios and strategic decisions.

Furthermore, the rapid digitalization of the insurance industry across the world, propelled by advancements in InsurTech, is significantly driving the general banking and financial services market expansion. 

According to a recent Swiss Re report, South Korea leads in insurance digitalization, frequently topping the rankings due to its high scores in access, use, and innovation. The United States is 4th, showing improvements in these areas. China has advanced from 26th to 16th place, driven by increased digital insurance use. 

This transformation enhances operational efficiency by improving data management and analysis, leading to better customer experiences and the development of innovative financial products. However, increasing cyber threats and data breaches pose significant risks to data security, thereby restraining the general banking and financial services market growth. 

On the contrary, introduction of blockchain technology and robotic process automation (RPA) may create ample opportunities of the market in forthcoming years. This technology will enhance transparency, streamline processes, and improve efficiency of financial services, leading to increased operational effectiveness and reduced costs.

Market Segmentations and Scope of the Study

The general banking and financial services market report is segmented on the basis of personal banking, business banking, specialized services, and region. On the basis of personal banking, the market is divided into individual customers, high net worth individuals, and students & young adults. On the basis of business banking, the market is classified into small & medium enterprises, corporate clients, and startups & entrepreneurial ventures. On the basis of specialized services, the market is divided into insurance, retirement planning, and online and mobile banking. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific dominates the general banking and financial services market share and is expected to continue its dominance during the forecast period. This is attributed to factors such as the presence of the largest Banking, Financial Services, and Insurance (BFSI) sector driven by the rapid economic growth and rising middle-class population. 

According to the China Banking and Insurance Regulatory Commission, China's BFSI is one of the largest industries in the world with total assets of these sector valued at USD 51.19 trillion in 2022. The region's growing economic footprint and increasing financial assets create substantial opportunities and drive growth in the banking and financial services industry.

Moreover, the rising GDP across the region fuels growth in the general banking and financial services industry by boosting consumer spending and investment, leading to greater demand for financial products and services. 

According to the latest World Bank report, India achieved a 6.9% GDP growth in 2022-23, making it one of the fastest-growing economies in the Asia-Pacific region, creating a favorable environment for the banking and financial services sector.

On the other hand, North America is expected to show a steady growth in the general banking and financial services sector, due to the rapid expansion of insurance sector across the region. This expansion enhances market opportunities, stimulates innovation, and improves financial security across the region. 

According to latest report published by National Association of Insurance Commissioners (NAIC), the number of insurance companies in the U.S. grew significantly, reaching 2,456 in 2022, up from 2,422 in 2021. Such surge in the insurance sector drives demand for financial services for enhancing operational efficiency. 

Moreover, the presence of key market players in the region such as MongoDB Inc, Bank of America Corporation, JPMorgan Chase & Co., and others drive market growth through continuous innovation, launching new products to meet evolving consumer demands. For instance, June 2023, MongoDB Inc. introduced MongoDB Atlas for Industries, a program designed to accelerate cloud adoption and modernization for organizations. 

The program offers industry-specific expertise to financial services industry, allowing financial institutions to modernize their applications, enhance customer experiences, and leverage new technologies such as generative AI while ensuring data privacy and regulatory compliance.

Competitive Landscape

Various key market players operating in the general banking and financial services industry include JPMorgan Chase & Co., Bank of America Corporation, Citigroup Inc., Wells Fargo & Company, Goldman Sachs Group Inc., Morgan Stanley, Xaver, Barclays PLC, Deutsche Bank AG, UBS Group AG, Sapiens International Corporation, BNP Paribas, Industrial and Commercial Bank of China (ICBC), State Bank of India, MongoDB Inc, and others. 

These market players are adopting various strategies such as business expansion and new services launch to remain dominant in the market. For instance, in March 2024, Xaver, launched its B2B AI platform for life insurance and private pensions. 

The company aims to address the challenges in the life insurance and pension savings sectors by leveraging AI technology to enhance operational and sales efficiency for banks, insurers, and brokers. 

Moreover, in June 2023, Citigroup launched a sustainable deposits solution for institutional clients in India, aiming to support the country's sustainable finance goals. The solution offers clients the opportunity to invest in deposits that will be used to fund projects focusing on renewable energy, clean technology, and environmental sustainability.

Furthermore, in December 2022, Sapiens International Corporation collaborated with LocalTapiola, Finland's second-largest insurer, to implement a new Policy Administration System (PAS). Utilizing Sapiens' CoreSuite, Business Intelligence, Cloud Services, and Cloud Hosting, the system will consolidate eight existing PAS into one digital platform, enhancing customer experience and operational efficiency.

Key Benefits

• The report provides quantitative analysis and estimations of the general banking and financial services market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future general banking and financial services market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the general banking and financial services industry is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

General Banking and Financial Services Market Key Segments

By Personal Banking 

• Individual Customers

• High Net Worth Individuals

• Students & Young Adults

By Business Banking 

• Small & Medium Enterprises

• Corporate Clients

• Startups & Entrepreneurial Ventures

By Specialized Services 

• Insurance

• Retirement Planning

• Online & Mobile Banking

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa    

REPORT SCOPE AND SEGMENTATION:

Key Players

• JPMorgan Chase & Co

• Bank of America Corporation

• Citigroup Inc

• Wells Fargo & Company

• Goldman Sachs Group Inc

• Morgan Stanley

• Xaver

• Barclays PLC

• Deutsche Bank AG

• UBS Group AG

• Sapiens International Corporation 

• BNP Paribas

• Industrial and Commercial Bank of China (ICBC)

• State Bank of India

• MongoDB Inc