Allied Market Research

2024

Retail Bank Loyalty Market

Retail Bank Loyalty Market Size, Share, Competitive Landscape and Trend Analysis Report by Type (B2C Solutions, B2B Solutions, Corporate), by End-User (Personal, Business) and by Enterprise Size (Large enterprise, Small Medium Enterprises): Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: | Vineet Kumar
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Retail banking provides easy and convenient access to banking services. Moreover, growth in penetration of internet usage and technological advancements globally contributes toward the growth of the retail bank loyalty market. The retail bank loyalty programs have been created to encourage customers to use the services of businesses of a bank that are part of the program. There are programs for almost every type of business, each with its own set of features and rewards schemes. In the global retail banking industry, loyalty programs have become one of the most important marketing tools.

In developed economies, retail banks offer a variety of loyalty programs, but many of them have become commoditized. As a result, banks have been forced to implement innovative programs to remain competitive and profitable. In the last five years, there has also been an increase in cost pressure due to new regulatory trends. Loyalty programs are seen as a critical revenue-generating tool that has been shown to lower customer acquisition costs. As evidenced by the relatively low loyalty program penetration rates in emerging economies, retail banking is still in its early stages. Therefore, the surge in demand for retail bank loyalty programs is expected to boost the growth of the retail bank loyalty market trends in the upcoming years.

The global retail bank loyalty market is segmented on the basis of type, end-user, enterprise size and region. Based on type, the market is divided into B2C solutions, B2B solutions and corporate. In terms of end-user, the market is categorized into personal and business. On the basis of enterprise size, the market is divided into large enterprise, small & medium enterprises. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global retail bank loyalty industry include Bank of America Corporation, HSBC Bank, HDFC Bank Ltd, Citigroup Inc., Royal Bank of Canada, Bank of India, International Business Machines (IBM) Corporation, Oracle Corporation, Comarch SA and TIBCO Software Inc. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global retail bank loyalty market.

COVID-19 Scenario Analysis

  • During the COVID-19 outbreak, businesses are dealing with a variety of operational issues. To deal with this situation, many banks and financial institutions are providing new digital tools and techniques to their customers, including personal finance software, which has seen significant growth. 
  • End-users increased use of online and mobile banking during the pandemic positively impacted the personal finance software market. Furthermore, many fintech and insurance companies have introduced a variety of appealing strategies to encourage SMEs and consumers to use personal software, resulting in a plethora of growth opportunities for the retail bank loyalty program market.

Top Impacting Factors

The adoption of analytical tools to offer customized reward programs and the rise in the adoption of marketing and distribution strategies by banks to remain profitable are driving the growth of the market. In addition, banks offering programs at low-cost channels to achieve operational efficiency further propels growth. However, stringent regulations across key markets may put pressure on loyalty programs might limit the retail bank loyalty market expansion. On the contrary, increased adoption of retail bank loyalty programs among developed countries is expected to provide lucrative opportunities to the market in the upcoming years. 

Adoption of Analytical Tools to Offer Customized Reward Programs

Banks and other credit card issuers have traditionally offered reward programs based on a customer's income and demographic profile. Customers are now being segmented by banks based on their lifestyle choices and purchasing habits. In terms of adoption rates, the use of analytical tools to better understand consumer spending patterns and offer personalized reward programs has increased. The approach enables card issuers to launch customized programs for individual customers rather than blanket programs for all customers. This method also aids in identifying and isolating the most profitable customers, as well as phasing out programs that do not add significant value to the bank's overall business.

Furthermore, analytics are allowing banks to collaborate with merchants to offer location-based, real-time discounts. Therefore, the growing adoption of analytical tools to offer customized reward programs is driving the growth of the retail bank loyalty program market during the forecasted period.

Rise in Adoption of Marketing & Distribution Strategies by Banks to Remain Profitable

Banks have been changing their strategies and operational models to stay profitable, such as evaluating their existing loyalty program design frameworks to implement effective loyalty programs. This includes determining the best combination of funding options and reward offerings to boost customer loyalty and profitability. Merchant-funded loyalty programs have been developed by several banks in collaboration with merchants and retailers.

Banks are also evaluating cost-effective alternatives to traditional channels, such as mobile platforms and social media. Therefore, the increased adoption of marketing and distribution strategies by banks to remain profitable is driving the growth of the retail bank loyalty program market during the forecasted period.

Key Benefits of the Report

  • This study presents an analytical depiction of the global retail bank loyalty market forecast along with the current trends and future estimations to determine the imminent investment pockets.    
  • The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the market share.     
  • The current market is quantitatively analyzed to highlight the global retail bank loyalty market growth scenario.         
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
  • The report provides a detailed retail bank loyalty market analysis depending on the present and future competitive intensity of the market.

Questions Answered in the Retail Bank Loyalty Market Research Report    

  • Which are the leading players active in the global retail bank loyalty market?
  • What would be the detailed impact of COVID-19 on the global retail bank loyalty market size?
  • What are current trends that would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities of the global retail bank loyalty market share?
  • What are the projections for the future that would help in taking further strategic steps?

Retail Bank Loyalty Market Report Highlights

Aspects Details
Retail Bank Loyalty Market By Type
By Type
  • B2C Solutions
  • B2B Solutions
  • Corporate
Retail Bank Loyalty Market By End-User
By End-User
  • Personal
  • Business
Retail Bank Loyalty Market By Enterprise Size
By Enterprise Size
  • Large enterprise
  • Small & Medium Enterprises
Retail Bank Loyalty Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

Royal Bank of Canada, Oracle Corporation, Citigroup Inc., International Business Machines (IBM) Corporation, TIBCO Software Inc., Bank of India, Comarch SA, HDFC Bank Ltd, Bank of America Corporation, HSBC Bank

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Retail Bank Loyalty Market

Global Opportunity Analysis and Industry Forecast, 2023-2032