Retail banking has scope for innovation as banks attempt to provide all products and services that the client wants. Banks continue to modify their products according to market demand, thereby staying relevant. Retail banking is the prime candidate to make full use of the digital revolution and be a source of innovation.
In any economy, the rise of the middle class is a significant contributing factor. It is expected that in most countries, the proportion of middle to high-income homes will continue to rise. The rise of the younger population (millennials and Gen Z) will generate increased purchasing power also. Constantly Improving consumer buying power, combined with more liberal attitude to personal debt, means a huge opportunity for retail banking to come out with innovative credit products and loan offerings.
In a growing economy, retail banking has huge opportunities for profitable growth. Retail banking therefore has strong potential across the globe, in all developing economies. In a rapidly growing world economy, retail banking has a huge responsibility to make sure that the economic growth is equitable and permeates across all the sectors. Retail banking therefore holds out enormous possibilities in disseminating inclusive financial services, particularly in developing economies. Even today, as much as 65% of the population is still unbanked (lacking access to financial services) and the banking sector has to make intelligent use of the latest digital and other technology to enable financial inclusion across the world.