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China Consumers and Retail Banking Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Consumers and Retail Banking market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Consumer and retail banking is defined as the provision of banking services by banks to individual consumers, rather than to companies, corporations or other banks.

For this report, the following services of retail banks are included:

  • Savings and transactions
  • Debit card and credit card services
  • Personal loans and mortgages
  • Financial advisory and wealth management services

Excluded

  • Financial services provided by investment banks including but not limited to capital raising, mergers and acquisitions, issuance of securities, etc.
  • Commercial banking or wholesale banking services.

Expert analysis from a specialist in the field

Written by Summer Xia, a leading analyst in the Financial Services sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The number of accounts held by consumers has been steadily rising, with nearly every internet user in China maintaining a deposit account. By contrast, the credit card market still has plenty of room to grow as consumers are becoming more open-mined towards spending. The development of new technologies and the online channel has given banks a much wider reach Summer Xia
Financial Services Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Excluded
          • Definition
          • Executive Summary

              • The market
                • Figure 1: Best- and worst-case forecast of China retail bank market value, 2013-23
              • Companies and brands
                • Figure 2: Retail banks’ market shares, 2018
              • The consumer
                • Excellent growth potential in credit card accounts
                  • Figure 3: Types of debit card account owned, January 2019
                  • Figure 4: Types of credit card account owned, January 2019
                • Well entrenched CCB and ICBC
                  • Figure 5: Penetration of banks, by debit account and credit account, November 2016 and January 2019
                • Frequent usage of the Big Four banks and CMB
                  • Figure 6: Most often used bank accounts, November 2016 and January 2019
                • The mature online banking system
                  • Figure 7: Satisfaction by attributes, very satisfied and satisfied, January 2019
                • Off-site channels most popular for small transactions and information gathering
                  • Figure 8: Ways to bank, January 2019
                • Eye-catching elements are less appealing, especially to older consumers
                  • Figure 9: Affinity credit cards preference, January 2019
                • What we think
                • Issues and Insights

                  • Fintech is not the answer to everything
                    • The facts
                      • The implications
                        • Private banking is more than retail upgrades
                          • The facts
                            • The implications
                              • Where the opportunities for foreign banks lie
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • A very positive outlook for retail banking…
                                      • …boosted by relaxing policy…
                                        • …and technology
                                        • Market Size and Forecast

                                          • Continued growth well into the future
                                            • Figure 10: Best- and worst-case forecast of China retail bank market value, 2013-23
                                          • Banks shift focus to consumer banking
                                            • Figure 11: Net interest margin, 2016-18
                                        • Market Drivers

                                          • Inclusive financial services for everyone
                                            • Digital revolution
                                              • Asset management on the rise
                                                • Figure 12: Deposits of households, 2007-18
                                            • Key Players – What You Need to Know

                                              • Competition increasingly formidable
                                                • Shore up shortcomings and play to strengths
                                                  • Novel ways to acquire more customers
                                                  • Market Share

                                                    • Top players remain unchanged, but their performance varies
                                                      • Figure 13: Retail banks’ market shares by value, 2017-18
                                                    • State-owned banks
                                                      • CCB hurt by cool down in mortgage sales
                                                        • Joint-equity banks
                                                          • Ping An’s digital investment pays off
                                                          • Competitive Strategies

                                                            • Recruit top talent to develop investment management business
                                                              • Work together with third parties
                                                                • Differentiation through specialisation
                                                                • Who’s Innovating?

                                                                  • When banking meets new retail
                                                                    • Figure 14: BOC’s new store in partnership with WHICHBANKS, Beijing, 2018
                                                                    • Figure 15: CCB’s unstaffed branch, Shanghai, 2018
                                                                  • Benefit from collective intelligence
                                                                    • Everyone is welcome
                                                                    • The Consumer – What You Need to Know

                                                                      • Account ownership continues rising
                                                                        • ICBC attracted most frequent users
                                                                          • Investment products are the pain point of the consumer banking sector
                                                                            • Well-developed online channel
                                                                              • Opportunities in issuing travel-related affinity cards
                                                                              • Account Ownership

                                                                                • Higher ownership of bank accounts
                                                                                  • Figure 16: Repertoire analysis of debit and credit card ownership, January 2019
                                                                                • Penetration reflects the leadership of state-owned banks
                                                                                  • Figure 17: Types of account with leading retail banks, January 2019
                                                                                • Who are more likely to have accounts with multiple banks?
                                                                                  • Figure 18: Average number of types of credit card account owned, by age, January 2019
                                                                                • Most banks have expanded their customer base
                                                                                  • Figure 19: Types of account with leading retail banks, November 2016 and January 2019
                                                                                • CMB intrigues younger respondents
                                                                                  • Figure 20: Penetration of banks, debit account, by age, January 2019
                                                                                  • Figure 21: Penetration of banks, credit account, by age, January 2019
                                                                              • Most Used Bank Accounts

                                                                                • China Merchants Bank leaping ahead
                                                                                  • Figure 22: Most often used bank accounts, November 2016 and January 2019
                                                                                • Demographic profile of customers
                                                                                  • Some banks need to push their credit card services
                                                                                    • Figure 23: Bank account owned at the most often used banks, by most often used banks, January 2019
                                                                                • Satisfaction Influencing Factors

                                                                                  • Overall satisfaction remains high, led by BOC and CMB
                                                                                    • Figure 24: Overall satisfaction rates of banks, by most often used bank, January 2019
                                                                                    • Figure 25: Key drivers of satisfaction (Industrial and Commercial Bank of China), January 2019
                                                                                  • BOCOM and ABOC are rated less favourably compared to three years ago
                                                                                    • Figure 26: Overall satisfaction rate of banks, very satisfied, November 2016 and January 2019
                                                                                  • CMB: aim for versatile service
                                                                                    • Figure 27: Key drivers of satisfaction (China Merchants Bank), January 2019
                                                                                  • BOC: offer more investment products
                                                                                    • Figure 28: Key drivers of satisfaction (Bank of China), January 2019
                                                                                  • ABC: transaction efficiency is a must
                                                                                    • Figure 29: Key drivers of satisfaction (Agricultural Bank of China), January 2019
                                                                                • Ways to Bank

                                                                                  • Most of people are comfortable with telephone or internet banking
                                                                                    • Figure 30: Banking services that consumers would not want to do off-site, January 2019
                                                                                  • Bank mobile apps are most welcomed
                                                                                    • Figure 31: Ways to bank, January 2019
                                                                                  • High earners stick with the official channel
                                                                                    • Figure 32: Preferred ways to bank, by income, January 2019
                                                                                  • Age difference in channels for information gathering and money transfers
                                                                                    • Figure 33: Preferred ways to bank, by generation, January 2019
                                                                                    • Figure 34: Preferred ways to bank, money transfer, by generation, January 2019
                                                                                • Affinity Credit Cards

                                                                                  • Practical benefits come first
                                                                                    • Figure 35: Affinity credit cards preference, January 2019
                                                                                  • Preferences differ by generation
                                                                                    • Figure 36: Affinity credit cards preference, by generation, January 2019
                                                                                  • Males’ fondness of online travel agency co-branded cards
                                                                                    • Figure 37: Affinity credit cards preference, by gender, January 2019
                                                                                • TURF Analysis

                                                                                  • Methodology
                                                                                    • It’s not easy to encourage credit card application
                                                                                      • Figure 38: Attractive attributes of affinity credit cards – TURF Analysis – January 2019
                                                                                      • Figure 39: Co-branded credit card – TURF Analysis – January 2019
                                                                                  • Meet the Mintropolitans

                                                                                    • MinTs on average own 4.2 debit cards and 3.2 credit cards
                                                                                      • Figure 40: Types of debit card account owned, by MinTs and non-MinTs, January 2019
                                                                                      • Figure 41: Types of credit card account owned, by MinTs and non-MinTs, January 2019
                                                                                    • Biggest gap in ownership
                                                                                      • Figure 42: Penetration of banks, by debit account and credit account, January 2019
                                                                                      • Figure 43: Most often used bank accounts, by MinTs and Non-MinTs, January 2019
                                                                                    • Strong interest in affinity credit cards with travel service providers
                                                                                      • Figure 44: Affinity credit cards preference, by MinTs and non-MinTs, January 2019
                                                                                  • Appendix – Market Size and Forecast

                                                                                      • Figure 45: Market value of consumer and retail banks and forecast, 2013-23
                                                                                  • Appendix – Methodology and Abbreviations

                                                                                    • Methodology
                                                                                      • Fan chart forecast
                                                                                        • Abbreviations