Allied Market Research

2024

Rural Banking Market

Rural Banking Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : IT in BFSI

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Author's: | Onkar Sumant
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Rural Banks are government-owned scheduled commercial banks that operate at a regional level in various states. These banks are owned by the government of the respective economies. They were established to provide basic banking and financial services to rural areas. Rural residents require the same banking services as residents of larger towns and cities. Regular retail banking services, such as loans and mortgages, may be offered by a community bank in a rural area, allowing personal and business customers to manage their banking needs close to home. Furthermore, some rural banks develop specialty commercial skills in areas such as agribusiness, depending on their location and local business focus. Some, for example, specialize in business credit and funding for farming, ranching, and other agricultural customers through the farm credit system, which is a network of borrower-owned lending cooperatives and specialized service organizations. Therefore, the surge in demand for rural banking services is expected to boost the growth of the market in the upcoming period.

The global rural banking market is segmented on the basis of types, application and region. Based on type, the market is divided into regional rural banks (RRBs), cooperatives, commercial banks, self-help groups, and land development banks. In terms of application, the market is categorized into payments, processing services, customer & channel management, risk management and others. 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 rural banking industry include AllTrust Networks, CashFlows, HID Global Corporation, Thales Group, IDEMIA, Ingenico, Nuance Communications Inc., Precise Biometrics, Suprema and Verint VoiceVault Voice Authentication. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global rural banking market.

COVID-19 Scenario Analysis

  • During the COVID-19 pandemic, the global rural banking market trends experienced significant growth and continued development. Furthermore, due to widespread fear of the virus and a desire to maintain social distance, consumers have been primarily using mobile phones and web browsers to access banking services.
  • As a result, shifting consumer preferences toward online banking services has accelerated the market's growth, by shifting from the traditional banking system. Furthermore, COVID-19 had a positive impact on rural banking, which is expected to continue to dominate during the forecast period.

Top Impacting Factors

Increased adoption of new technologies and having a positive impact on the community are driving the growth of the market. In addition, the rural banks helping in the development of rural or backward areas further help in propelling the growth of the market. However, declining customer numbers can affect the bank's financial performance as there will be less need for credit & deposit services, which leads to less income, and further limits the growth of the market.

Contrarily, the trust in rural banks as loans issued by the rural banks are less likely to be default is expected to provide lucrative opportunities to the market in the upcoming years.

Increased Adoption of New Technologies

Some rural banks are expanding their technology and services to keep up with modern industry trends. During the COVID-19 pandemic, the shifting of the services from traditional systems to online helped to propel the growth of the market.

In another instance, in U.S., one of Iowa's smallest rural banks piloted a scheme to deploy a new type of ATM that used a live teller who could be accessed via video in 2014. Other banks have implemented a virtual teller system to supplement or replace staffed branches. This further resulted in assisting customers to use a video link to communicate with a teller in a centralized call center. Therefore, the increased adoption of the rural banks in integrating new technologies is driving the growth of the rural banking market during the forecast period.

Having a Positive Impact on the Community

The bank's role in the community is an often overlooked aspect of rural banking. Rural banks, unlike non-local banks, are deeply ingrained in the lives of the communities they serve. Loan applicants are more than just numbers on a page or an algorithm, they are friends and neighbors. Local banks support local sports teams, charities, and scout troops by purchasing advertisements in local venues. All of these things contribute to the community's life and health. Furthermore, when a single bank closes, the impact on local businesses can be devastating. Local merchants must not only travel to another community to make deposits or purchase change for their registers, but residents must also leave their home community for financial services. Therefore, having a positive impact on the community is further expected to drive the growth of the rural banking market during the forecasted period.
 

Key Benefits of the Report

  • This study presents an analytical depiction of the global rural banking 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 rural banking market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.         
  • The report provides a detailed rural banking market analysis depending on the present and future competitive intensity of the market.

Questions Answered in the Rural Banking Market Research Report

  • Which are the leading players active in the global rural banking market?
  • What would be the detailed impact of COVID-19 on the rural banking 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 rural banking market share?
  • What are the projections for the future that would help in taking further strategic steps?

Rural Banking Market Report Highlights

Aspects Details
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By Type
  • Regional Rural Banks (RRBs)
  • Cooperatives
  • Commercial banks
  • Self-Help Groups,
  • Land Development Banks
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By Application
  • Payments
  • Processing Services
  • Customer and Channel Management
  • Risk Management
  • Others
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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)
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Key Market Players

Suprema, Nuance Communications Inc., Verint VoiceVault Voice Authentication, HID Global Corporation, AllTrust Networks, IDEMIA, CashFlows, Thales Group, Precise Biometrics, Ingenico

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Rural Banking Market

Global Opportunity Analysis and Industry Forecast, 2023-2032