As the financial world spun faster in 2023, with digital wallets swelling to 5.2 billion users and global banking assets climbing to $182.8 trillion, a year of profound transformation unfolded, marked by a relentless digital shift, resilient profits in the face of economic headwinds, and surprising stability across global markets.
Key Takeaways
- In 2023, global banking assets reached $182.8 trillion, marking a 4.7% year-over-year growth driven by increased lending and deposits
- US commercial banks held $23.7 trillion in total assets as of Q4 2023, with loans comprising 52% of the portfolio
- The number of bank branches in the US declined by 1,800 to 65,900 in 2023 due to digital shift
- Global life insurance premiums reached $2.8 trillion in 2023, up 5% YoY
- US property & casualty insurance market size was $802 billion in 2023
- Health insurance penetration in Europe averaged 85% population coverage in 2023
- Global assets under management reached $119 trillion in 2023, up 12.5% YoY
- US mutual fund assets totaled $19.7 trillion as of Q4 2023
- ETFs worldwide held $11.5 trillion AUM in 2023
- Number of fintech unicorns reached 150 globally in 2023
- Global fintech funding dropped 38% to $114 billion in 2023
- Neobanks worldwide had 428 million users in 2023
- Global non-cash transactions reached 1.3 trillion in 2023
- US credit card payments totaled $5.9 trillion in 2023
- Mobile wallet transactions volume was $16 trillion globally in 2023
The financial industry in 2023 saw growth in assets and digital banking but also regional challenges.
Banking
- In 2023, global banking assets reached $182.8 trillion, marking a 4.7% year-over-year growth driven by increased lending and deposits
- US commercial banks held $23.7 trillion in total assets as of Q4 2023, with loans comprising 52% of the portfolio
- The number of bank branches in the US declined by 1,800 to 65,900 in 2023 due to digital shift
- European banks' non-performing loans ratio fell to 2.1% in 2023 from 2.5% in 2022
- China's banking sector profit grew 3.2% to 2.5 trillion yuan in 2023 amid economic recovery
- Digital banking users worldwide hit 2.8 billion in 2023, up 12% from prior year
- Average return on equity for top 100 banks was 10.4% in 2023
- Mortgage lending in the US totaled $2.1 trillion in 2023, down 40% from 2022 peak
- SME lending by banks globally reached $25 trillion in 2023
- Basel III compliance among G20 banks reached 95% capital adequacy ratio in 2023
- UK retail banks' customer satisfaction score averaged 78% in 2023
- Indian banks' NPAs dropped to 3.9% of gross advances in FY2023
- Global bank mergers totaled 1,200 deals worth $450 billion in 2023
- US credit card debt hit $1.13 trillion in Q4 2023
- Australian banks' home loan arrears rate was 0.9% in 2023
- Japanese banks' profitability rose to 5.2% ROA in 2023 post-negative rates
- Brazilian banking assets grew 12% to BRL 8.5 trillion in 2023
- Canadian banks' Tier 1 capital ratio averaged 13.2% in 2023
- South African banks' credit growth was 4.5% in 2023
- Russian banks' assets shrank 2% to RUB 140 trillion amid sanctions in 2023
- Singapore banks' net interest margin hit 2.1% in 2023
- Mexican banks' loan portfolio grew 8.7% to MXN 7.2 trillion in 2023
- Turkish banks' FX-denominated loans were 25% of total in 2023
- Saudi banks' profit soared 25% to SAR 120 billion in 2023
- UAE banks' assets exceeded AED 3.5 trillion in 2023
Banking Interpretation
The global banking system is simultaneously flexing its vast $182.8 trillion muscles while nervously tapping its foot, as profits climb and loans surge even as branches shutter, digital users explode, and the ghost of bad debts—and in some places, sanctions—lingers in the ledgers.
Fintech
- Number of fintech unicorns reached 150 globally in 2023
- Global fintech funding dropped 38% to $114 billion in 2023
- Neobanks worldwide had 428 million users in 2023
- Buy Now Pay Later transaction volume hit $300 billion globally in 2023
- Embedded finance market size reached $92 billion in 2023
- Open banking APIs usage grew 25% to 15 billion calls in Europe 2023
- Regtech spending worldwide was $12.6 billion in 2023
- Digital lending platforms approved $500 billion in loans in 2023
- Blockchain in finance transactions totaled $4 trillion in 2023
- Insurtech funding reached $8.7 billion globally in 2023
- P2P lending volume was $100 billion worldwide in 2023
- Crowdfunding platforms raised $34 billion in equity crowdfunding in 2023
- Digital wallets users hit 5.2 billion globally in 2023
- Fintech M&A deals numbered 1,200 worth $50 billion in 2023
- Asia-Pacific fintech investment was $25 billion in 2023
- US challenger banks raised $3.2 billion VC in 2023
- DeFi total value locked peaked at $100 billion in 2023
- Wealthtech AUM grew to $1.2 trillion in 2023
- Paytech market valued at $200 billion in 2023
Fintech Interpretation
Despite venture capitalists clutching their wallets ever tighter in 2023, fintech's disruptive offspring continued to multiply like confident, cashless rabbits, embedding themselves deeper into the fabric of global finance than ever before.
Insurance
- Global life insurance premiums reached $2.8 trillion in 2023, up 5% YoY
- US property & casualty insurance market size was $802 billion in 2023
- Health insurance penetration in Europe averaged 85% population coverage in 2023
- China's insurance density rose to $450 per capita in 2023
- Reinsurance premiums globally totaled $620 billion in 2023
- US auto insurance claims averaged $5,800 per incident in 2023
- Cyber insurance policies issued worldwide surged 21% to 1.2 million in 2023
- UK life insurance payouts reached £15 billion in 2023
- Indian general insurance market grew 13% to INR 2.5 lakh crore in FY2023
- Global insurance investment assets hit $36 trillion in 2023
- Australian home insurance claims cost AUD 1.2 billion from weather events in 2023
- French health insurance expenditure was €240 billion in 2023
- Japanese non-life insurance premiums declined 1.2% to ¥12 trillion in 2023
- Brazilian life insurance penetration was 3.2% of GDP in 2023
- Canadian P&C insurers' combined ratio was 98.5% in 2023
- South Korean insurance assets grew 4% to KRW 2,300 trillion in 2023
- German motor insurance market share leader had 28% in 2023
- Italian life insurance savings products totaled €450 billion in 2023
- Spanish health insurance beneficiaries reached 13 million in 2023
- Global parametric insurance market size was $15 billion in 2023
- US Medicare Advantage enrollment hit 31 million in 2023
- Swiss reinsurance ceded premiums grew 7% to CHF 45 billion in 2023
- Netherlands pension insurance assets were €1.7 trillion in 2023
Insurance Interpretation
The sheer scale of global insurance—from $36 trillion in assets to $5,800 fender benders—proves that while we're busy betting on life's uncertainties, the industry is busy making a statistically certain fortune from them.
Investments
- Global assets under management reached $119 trillion in 2023, up 12.5% YoY
- US mutual fund assets totaled $19.7 trillion as of Q4 2023
- ETFs worldwide held $11.5 trillion AUM in 2023
- Hedge funds managed $4.3 trillion globally in 2023
- Private equity dry powder reached $2.6 trillion record in 2023
- Pension fund assets in OECD countries hit $52 trillion in 2023
- Robo-advisors AUM grew to $1.8 trillion globally in 2023
- US 401(k) plan assets reached $7.4 trillion in 2023
- Sovereign wealth funds controlled $11 trillion AUM in 2023
- ESG investment assets surpassed $35 trillion worldwide in 2023
- Venture capital investment totaled $345 billion globally in 2023
- UK wealth management AUM was £3.1 trillion in 2023
- Indian mutual fund AUM crossed INR 50 lakh crore in 2023
- Chinese AUM in public funds hit RMB 28 trillion in 2023
- Australian superannuation assets reached AUD 3.9 trillion in 2023
- Real estate investment trusts market cap was $1.7 trillion globally in 2023
- Bond fund inflows were $450 billion in US 2023
- Family offices worldwide managed $5.8 trillion in 2023
- Crypto assets under management hit $50 billion in 2023
- Japanese GPIF assets totaled ¥225 trillion in 2023
- Brazilian pension funds AUM grew 10% to BRL 1.1 trillion in 2023
- Canadian mutual fund AUM was CAD 2.1 trillion in 2023
- South African unit trusts AUM reached ZAR 3 trillion in 2023
Investments Interpretation
The world's wealth is now so thoroughly managed, sliced, and repackaged that the global economy resembles a frantic, multi-trillion-dollar game of financial Jenga, where everyone is nervously watching the same wobbly block labeled 'confidence'.
Payments
- Global non-cash transactions reached 1.3 trillion in 2023
- US credit card payments totaled $5.9 trillion in 2023
- Mobile wallet transactions volume was $16 trillion globally in 2023
- Real-time payments transactions hit 200 billion worldwide in 2023
- Cross-border payment flows reached $190 trillion in 2023
- Europe card payments value was €7.2 trillion in 2023
- China's digital payments market size $40 trillion in 2023
- ACH payments in US processed 30 billion transactions worth $76 trillion in 2023
- Contactless payments share reached 65% of POS in UK 2023
- Global remittance flows totaled $860 billion in 2023
- India UPI transactions hit 131 billion worth INR 200 lakh crore in 2023
- Brazil Pix instant payments reached 42 billion transactions in 2023
- Australian New Payments Platform processed 2.5 billion txns in 2023
- SEPA credit transfers totaled 50 billion in Europe 2023
- US check payments declined to 11 billion in 2023
- Crypto payment volume was $10 trillion on-chain in 2023
- Japan cash usage share fell to 20% of transactions in 2023
- Nigeria mobile money accounts reached 200 million in 2023
- Singapore PayNow transactions grew 60% to 1.2 billion in 2023
- Global merchant acquiring fees totaled $120 billion in 2023
Payments Interpretation
The sheer scale of digital money zipping around the globe—from tap-and-go coffees to multi-trillion-dollar cross-border flows—makes the old image of Scrooge McDuck swimming in gold coins look like quaint, inefficient pocket change.
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