The Latest Global Banking Industry Statistics Explained
The Global Banking Industry is worth approximately $134.1 trillion, as of 2020.
The statistic that the Global Banking Industry is worth approximately $134.1 trillion as of 2020 represents the combined value of financial assets held by banks across the world. This figure includes assets such as loans, deposits, securities, and other financial instruments. The size of the banking industry reflects its crucial role in facilitating economic activities, such as lending, investing, and providing financial services. The accumulated value of $134.1 trillion signifies the substantial scale and influence of the global banking sector, highlighting its importance in driving economic growth, facilitating global trade, and managing the financial well-being of individuals and businesses worldwide.
The cumulative global loan market size is projected to reach $4589.3 billion by 2025.
This statistic suggests that the total value of loans issued globally is expected to grow significantly, reaching an estimated $4589.3 billion by the year 2025. The projection indicates a substantial increase in the loan market size over the specified period, highlighting the potential expansion of borrowing activities and credit transactions on a global scale. This growth forecast may be influenced by various economic factors such as increased demand for financing, expanding financial markets, shifts in interest rates, and overall economic growth. As such, this statistic underscores the expected expansion of the loan market and the importance of monitoring and analyzing trends in borrowing and lending practices worldwide.
The top three banks in the world by assets are all Chinese: Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China.
The statistic that the top three banks in the world by assets are all Chinese—specifically the Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China—indicates a significant shift in the global banking landscape towards China. This reflects China’s rapid economic growth and development over the past few decades, leading to the rise of its banking sector. The dominance of Chinese banks in terms of assets underscores the country’s emergence as a major player in the international financial market, showcasing its growing influence and importance in the global economy.
Banking penetration in high-income economies is at 94%.
The statistic that banking penetration in high-income economies is at 94% signifies that a vast majority of individuals in these economies have access to banking services, such as savings accounts, checking accounts, loans, and other financial products. This high level of banking penetration reflects a mature and well-developed financial system within these economies, providing widespread access to essential financial services for individuals and businesses. The statistic suggests that the majority of people in high-income economies are actively using banking services, which can facilitate economic growth, financial stability, and wealth accumulation among the population.
The four largest banks in the United States (JP Morgan Chase, Bank of America, Wells Fargo, and Citibank) hold nearly 45% of all customer bank deposits.
The statistic that the four largest banks in the United States (JP Morgan Chase, Bank of America, Wells Fargo, and Citibank) collectively hold nearly 45% of all customer bank deposits indicates a significant level of concentration and market power within the banking industry. This concentration suggests that a substantial portion of the American population entrusts their savings and financial assets with these few major institutions, potentially leading to implications for competition, economic stability, and regulatory oversight. The dominance of these large banks may also influence banking practices, interest rates, and access to financial services for consumers and businesses across the country.
Banks have more than 60 million employees worldwide.
The statistic claiming that banks have more than 60 million employees worldwide suggests a significant presence and influence of the banking sector on a global scale. This statistic illustrates the extensive workforce employed by various financial institutions around the world, including commercial banks, investment banks, and other financial service providers. The large number of employees reflects the complexity and diversity of roles within the banking industry, ranging from customer service representatives to financial analysts and risk managers. Furthermore, it highlights the economic importance of the banking sector as a major employer and contributor to global economic activity and financial markets.
Almost two-thirds of global banking industry players expect Digital Transformation to cause a moderate to major shift in their competitive landscapes by 2021.
This statistic indicates that a significant majority of global banking industry players, approximately two-thirds, anticipate that Digital Transformation will bring about a noticeable change in their competitive landscapes by the year 2021. The term ‘Digital Transformation’ typically refers to the integration of digital technologies in all areas of a business, fundamentally changing how organizations operate and deliver value to customers. In the context of the banking industry, this likely implies the adoption of digital innovations such as online banking platforms, mobile payment systems, artificial intelligence, and big data analytics. The expectation of a moderate to major shift in competitive landscapes suggests that industry players are preparing for substantial changes in business strategies, customer interactions, and market dynamics as a result of embracing digital technologies.
Non-performing loans currently represent over 1.5% of total gross loans on a global level.
This statistic indicates that the proportion of non-performing loans relative to the total gross loans across the world is more than 1.5%. Non-performing loans are loans that are in default or are close to being in default. A high ratio of non-performing loans to total loans can be indicative of financial distress within the banking sector or the economy as a whole, as it suggests that a significant portion of loans are not being repaid as per the terms of the agreement. Monitoring this statistic is essential for assessing the health of the banking system and overall economic stability, as it reflects credit risk and potential financial vulnerabilities that could impact lending practices and economic growth.
Global mobile banking users are expected to reach 4 billion by 2026.
The statistic indicates that the number of individuals using mobile banking services worldwide is projected to increase to 4 billion by the year 2026. This significant growth reflects the ongoing trend of consumers shifting towards digital banking platforms and conducting financial transactions through mobile devices such as smartphones and tablets. Factors contributing to this growth include the convenience, accessibility, and ease of use that mobile banking offers to users. The increasing adoption of smartphones globally, along with improvements in mobile banking technology and security measures, are driving this rapid expansion in mobile banking user numbers. This statistic highlights the evolving landscape of the financial industry towards digitalization and the increasing reliance on mobile technology for managing personal finances.
The largest banks in the world by market capitalization in 2020 were JP Morgan Chase, Bank of America, and Industrial and Commercial Bank of China.
The statistic highlights the top three largest banks in the world in terms of market capitalization for the year 2020, which are JP Morgan Chase, Bank of America, and Industrial and Commercial Bank of China. Market capitalization is a measure that reflects the total value of a company based on the current stock price and the total number of outstanding shares. Therefore, these banks were considered the most valuable in the industry based on investor perception and market performance. Market capitalization is a crucial indicator of a bank’s size and influence in the financial sector, as it represents the confidence and value stakeholders place in these banking institutions.
Approximately 74% of North American consumers use Digital Banking channels at least once a week.
The statistic that approximately 74% of North American consumers use Digital Banking channels at least once a week means that a significant majority of individuals in the North American region utilize online or mobile banking services regularly. This high usage rate suggests a strong trend towards the adoption of digital financial tools, indicating a shift away from traditional brick-and-mortar banking methods. With the convenience and accessibility offered by digital banking channels, it is clear that a large portion of North American consumers have embraced the convenience and benefits of managing their finances electronically. This statistic highlights the increasing importance of digital technology in the realm of personal finance and highlights the need for financial institutions to continue investing in and enhancing their digital banking offerings to meet the evolving needs and preferences of consumers.
The US banking system alone holds assets of around $17.9 trillion.
The statistic ‘The US banking system alone holds assets of around $17.9 trillion’ refers to the total value of assets held by banks in the United States, including cash, securities, loans, and other investments. This vast sum underscores the size and significance of the banking sector within the US economy, highlighting the crucial role that banks play in providing financial services, facilitating economic activity, and supporting growth. The substantial amount of assets held by US banks also reflects the trust and confidence that individuals, businesses, and institutions place in the banking system to safeguard their deposits and investments, contributing to the overall stability and functioning of the financial system.
The African banking market is the second-fastest-growing and second-most profitable region globally.
The statistic indicates that the African banking market is experiencing significant growth and profitability compared to other regions worldwide. Despite not being the fastest-growing or most profitable, the fact that it ranks second in both aspects positions it as a key player in the global banking industry. This suggests that there are several opportunities for expansion and investment in the African banking sector, as its performance is strong and competitive on a global scale. The data highlights the potential for further growth and success in the African banking market, making it an attractive region for stakeholders in the financial sector.
The cost of Cybercrime in the banking industry reached $18.3 million per company in 2020.
The statistic that the cost of Cybercrime in the banking industry reached $18.3 million per company in 2020 indicates a significant financial burden on organizations within this sector due to online criminal activities. Cybercrime encompasses a range of illicit activities such as data breaches, ransomware attacks, and financial fraud that can target sensitive information and assets held by banking institutions. The high cost per company underscores the growing threat posed by cybercriminals, highlighting the importance of robust cybersecurity measures and investments in protecting financial data and assets. As technology continues to advance, the banking industry faces ongoing challenges in safeguarding against cyber threats to maintain trust and security for customers and stakeholders.
Global profits in the banking sector increased to $1.36 trillion in 2019, with a 12% return on equity.
The statistic ‘Global profits in the banking sector increased to $1.36 trillion in 2019, with a 12% return on equity’ indicates the financial performance of the banking industry worldwide in that year. The $1.36 trillion in profits signifies a substantial rise, illustrating the sector’s overall economic strength and profitability. Additionally, the 12% return on equity demonstrates the efficiency and effectiveness of banks in generating profits relative to their shareholders’ investments. This statistic suggests that the banking sector was not only highly profitable in 2019 but also efficiently managed its resources to provide solid returns to its investors. Overall, the data highlights the robustness and success of the global banking industry during the specified time period.
Over 60% of banks’ interactions with customers are digital, confirming the importance of cybersecurity.
The statistic that over 60% of banks’ interactions with customers are digital highlights the increasing reliance on technology and online platforms in the banking sector. This trend underscores the need for robust cybersecurity measures to protect sensitive financial information and ensure the privacy and security of customers’ data. As more transactions and communications move online, the potential risks associated with cyber threats and data breaches also escalate. Therefore, it is crucial for banks to invest in advanced cybersecurity systems and practices to safeguard their digital infrastructure and maintain the trust and confidence of their customers in the digital banking environment.
About 68% of adults worldwide have a bank account, marking an increase of 7% since 2014.
The statistic indicates that approximately 68% of adults globally now have a bank account, representing a 7% rise from the figure reported in 2014. The increase suggests a positive trend towards financial inclusion and access to banking services among the adult population. This growth could be attributed to various factors, such as advancements in technology making banking more accessible, increased financial literacy efforts, and government initiatives to promote banking services. Having a bank account is crucial for individuals to participate fully in the formal financial system, enabling them to save money securely, access credit, receive wages electronically, and make transactions more conveniently. The rise in bank account ownership among adults signifies progress towards financial empowerment and economic development on a global scale.
Conclusion
Based on the comprehensive statistics and analysis presented in this blog post, it is evident that the global banking industry is dynamic and constantly evolving. Key trends such as digital transformation, regulatory changes, and market volatility play a significant role in shaping the industry. Understanding these statistics is crucial for stakeholders to make informed decisions and navigate the complex landscape of the banking sector effectively.
References
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