Americas Regional Retail Banking Analysis by Country, Consumer Credit, Retail Deposits and Residential Mortgages, 2023

Americas Regional Retail Banking Analysis by Country, Consumer Credit, Retail Deposits and Residential Mortgages, 2023

Summary

This report analyzes the North and South American retail banking sectors from a comparative perspective, highlighting key similarities and differences across markets within the region. The largest banks in each market are discussed alongside macroeconomic forecasts, giving a feel for the composition of a given country’s economy and retail banking sector. The report also examines product holding across key banking, insurance, and investment products.

The low interest rate environment in North American markets has kept net interest margins low and falling. However, rising interest rates in Brazil and Mexico have not done much to improve the net interest margins experienced in either market. Inflation is expected to have spiked in 2022 in all countries other than Argentina. Projections of the average annual inflation rate suggest that inflation will subside in 2023 but settle at a level higher than the norm prior to 2022.

Scope

• Bank of America, JPMorgan Chase, and Wells Fargo in the US are the three largest banks in the region in terms of total divisional assets.
• On average, the Americas’ retail deposits and residential mortgages markets are as concentrated now as they were five years ago.
• High barriers for entry and growing confidence in the large players in the Brazilian banking sector have made it difficult for foreign and smaller providers to break into the consumer market. However, with the emergence of successful digital providers such as Nubank, the country’s retail deposits market concentration has fallen from 92% in 2016 to 82% in 2021.

Reasons to Buy

• Keep up to date with the macroeconomic trends impacting the retail banking sector in the Americas.
• Understand where the best opportunities lie by comparing countries based on factors ranging from average net interest margin to market concentration.
• Develop an understanding of the differences between consumers’ research methods, average tenure, and channel usage across different countries in the region.