China is set to overtake the US to become the biggest retail deposit market globally in 2021, according to data and analytics company GlobalData.
The company’s Global Retail Banking Analytics tool showed that Asian markets have and are expected to perform strongly between 2010 and 2021, while Europe and to a lesser extent, North America, have stagnated.
Macroeconomic growth has led to rising wages and living standards across Asia, increasing the ability of consumers to save, it said.
“Following the 2008/09 financial crisis banks retreated from international markets. Ten years later, continued strong growth across Asia is leading many regional and aspiring international banks to reconsider their strategies,” GlobalData retail banking analyst, Sean Harrison, said.
The Asia Pacific, which surpassed Europe to become the largest regional market for retail deposits in 2011, is forecast to reach $19.7 trillion in 2021, well ahead of North America at $14.1 trillion and Europe at $12.4 trillion.
India is expected to be the biggest mover, up from 13th place in 2010, to become the seventh largest retail deposit market in the world in 2021. At the same time, Australia is forecast to replace Spain as the 10th biggest globally.
“Consistent economic performance has led to strong growth in Australia’s retail deposit market,” Harrison said.