As of June2023, personal loans dominated the retail loans market in India by the count of active loans with a share of 20.8 percent. The segment was followed by credit card with around 18.5 percent. Auto loans ranked the lowest in terms of volume. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

In 2022, non-banking financial companies in India dominated the retail loans market in terms of the number of loans, with 53 percent market share. Private sector banks followed with around 21 percent. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

In the financial year 2023, home loans dominated the retail loan market in India by portfolio outstanding or value with a share of 40.7 percent, followed by personal loans with over 14 percent. Consumer-durable loans had the lowest portfolio outstanding or value in the retail loan category. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data was reported at 0.000 % in Mar 2025. This stayed constant from the previous number of 0.000 % for Dec 2024. India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data is updated quarterly, averaging 0.000 % from Dec 2017 (Median) to Mar 2025, with 30 observations. The data reached an all-time high of 5.000 % in Dec 2020 and a record low of 0.000 % in Mar 2025. India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD008: Bank Lending Survey: Reserve Bank of India: Loan Demand: Retail/Personal.

In financial year 2024, Indian banks had deployed over 53 trillion Indian rupees to the retail loans sector. This was an increase by around 20 percent compared to the previous year. The lion's share of credits went to the home loans segment with over 27 trillion Indian rupees. Other segments with a credit value of more than two trillion Indian rupees were auto loans as well as credit card receivables.

India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data was reported at 409,570.000 INR mn in 2024. This records an increase from the previous number of 315,410.000 INR mn for 2023. India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data is updated yearly, averaging 191,710.000 INR mn from Mar 2016 (Median) to 2024, with 9 observations. The data reached an all-time high of 409,570.000 INR mn in 2024 and a record low of 30,360.000 INR mn in 2016. India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAH051: Non Banking Financial Companies: NBFCs: Gross Advances.

In the financial year 2023, non-banking financial companies retail credit in India was estimated to 18 trillion Indian rupees. It was projected to further increase to 23 trillion Indian rupees by fiscal year 2025.

The India Private Banking Market is segmented based on the banking sector (Retail Banking, Commercial Banking, Investment Banking, and others). The report offers market size and forecasts for the India Private Banking Market in value (USD Million) for all the above segments.

India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening data was reported at 4.300 % in Jun 2024. This records an increase from the previous number of 4.167 % for Mar 2024. India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening data is updated quarterly, averaging 0.000 % from Sep 2017 (Median) to Jun 2024, with 28 observations. The data reached an all-time high of 28.571 % in Jun 2020 and a record low of 0.000 % in Sep 2023. India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD015: Bank Lending Survey: Reserve Bank of India: Loan Terms and Conditions: Retail/Personal.

As of the fourth quarter of fiscal year 2020, the State Bank of India had advanced 61 percent of its total retail loans to home loans, compared to other industries in the retail sector.

Overall, it was observed that the retail sector had a growing share of loans advanced from the bank while agriculture sector had the lowest share.

India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Net Response data was reported at 42.308 % in Dec 2024. This records a decrease from the previous number of 45.833 % for Sep 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Net Response data is updated quarterly, averaging 42.154 % from Sep 2017 (Median) to Dec 2024, with 30 observations. The data reached an all-time high of 53.846 % in Dec 2021 and a record low of -50.000 % in Jun 2020. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Net Response data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD008: Bank Lending Survey: Reserve Bank of India: Loan Demand: Retail/Personal.

In financial year 2024, the consumption lending in India had the highest lending volume of around 383 million loans as compared to other lending segments like microfinance and commercial lending. The lending industry in India witnessed a significant growth in recent years.

The Data shows the sectoral deployment of bank credit collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks. Note: 1. Data for the period April 2007 - December 2018 is in the Old Format and the data for January 2019 - September 2022 is in the New Format.

1. Report 1 a. Data are provisional and relate to select 41 scheduled commercial banks. From September 2017, data account for 90 per cent of total non-food credit extended by all scheduled commercial banks. b. Export credit under priority sector relates to foreign banks only. c. Micro and small under industry include credit to micro and small industries in manufacturing sector. d. Micro and small enterprises under Priority Sector include credit to micro and small enterprises in manufacturing as well as services sector. e. Priority Sector is as per the old definition and does not conform to FIDD Circular FIDD.CO.Plan.BC.54/04.09.01/2014-15 dated April 23, 2015. f. A sharp adjustment of Rs.17300 Crore in consumer durables credit in August 2018 was due to rectification of an error, as one bank had previously wrongly classified housing loans as consumer durable loans.

2. New Format a. Data are provisional. Non-food credit data are based on Section - 42 return, which covers all scheduled commercial banks (SCBs), while sectoral non-food credit data are based on sector-wise and industry-wise bank credit (SIBC) return, which covers select banks accounting for about 93 per cent of total non-food credit extended by all SCBs. b. With effect from January 2021, sectoral credit data are based on a revised format due to which values and growth rates of some of the existing components published earlier have undergone some changes. c. Non-food credit given for the periods December 18, 2020 and December 20, 2019 pertains to the periods January 1, 2021 and January 3, 2020 respectively. d. Credit data are adjusted for past reporting errors by select SCBs from December 2021 onwards. e. Micro and Small include credit to micro and small industries in the manufacturing sector. f. NBFCs include HFCs, PFIs, Microfinance Institutions (MFIs), NBFCs engaged in gold loans and others. g. Other Services include Mutual Funds (MFs), Banking and Finance other than NBFCs and MFs and other services which are not indicated elsewhere under services. h. Agriculture and Allied Activities also include priority sector lending certificates (PSLCs). i. Micro and Small Enterprises include credit to micro and small enterprises in manufacturing and services sectors and also include PSLCs. j. Medium Enterprises include credit to medium enterprises in the manufacturing and services sector.

India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Decrease data was reported at 0.000 % in Dec 2024. This stayed constant from the previous number of 0.000 % for Sep 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Decrease data is updated quarterly, averaging 1.724 % from Sep 2017 (Median) to Dec 2024, with 30 observations. The data reached an all-time high of 34.615 % in Jun 2021 and a record low of 0.000 % in Dec 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Decrease data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD008: Bank Lending Survey: Reserve Bank of India: Loan Demand: Retail/Personal.

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Retail Banking IT Spending Market Size 2025-2029

The retail banking it spending market size is forecast to increase by USD 14.64 billion at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing need for greater customer satisfaction through personalized services and digital offerings. This trend is further fueled by the incorporation of advanced analytics into third-party banking software, enabling institutions to gain valuable insights into customer behavior and preferences. However, this digital transformation comes with challenges, particularly in the areas of data privacy and security. As financial institutions continue to invest in IT solutions to meet evolving customer demands, they must also prioritize security measures to protect sensitive customer information. Companies seeking to capitalize on this market opportunity must stay abreast of the latest technologies and regulatory requirements, while also addressing the growing concerns around data privacy and security. Effective strategic planning and operational execution will be crucial for retail banks to navigate these challenges and succeed in this dynamic market.

What will be the Size of the Retail Banking IT Spending Market during the forecast period?

Request Free SampleThe market is experiencing significant growth as financial institutions prioritize technology investments to enhance customer experience, operational efficiency, and competitive position. With increasing interest rates and inflationary pressure, net interest margins remain a crucial revenue stream for retail banks. However, customer satisfaction and service propositions are key differentiators in a market where external stimuli, such as digital transformation and changing consumer preferences, continue to shape the landscape. IT spending in retail banking is focused on IT hardware and software, with a shift towards cloud solutions and mobile banking to improve accessibility and convenience. Data analytics and cybersecurity measures are also critical investments to mitigate risks and provide personalized offerings. Retail banks are embracing IT services to stay competitive, with a focus on digital transformation and the implementation of innovative technologies such as artificial intelligence, autonomous banking, blockchain technology, and biometric authentication. The integration of these advanced IT solutions aims to streamline banking operations, enhance security, and create value propositions that cater to evolving customer needs.

How is this Retail Banking IT Spending Industry segmented?

The retail banking it spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeIT servicesIT hardwareIT softwareApplicationApplication development and maintenanceSoftware deployment and supportInternal operationsChannel managementOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyThe NetherlandsUKAPACChinaIndiaJapanMiddle East and AfricaSouth America

By Type Insights

The it services segment is estimated to witness significant growth during the forecast period.In the retail banking sector, IT spending continues to be a significant investment area, driven by factors such as interest rates, net interest, inflationary pressure, and customer experience. IT services, including application development and maintenance, system integration, IT consulting, software deployment and support, and hardware deployment and support, dominate IT spending. IT consulting services experienced a 10% year-over-year growth in 2023, surpassing the overall IT services spend growth of 8.8%. Key players, such as Accenture, Capgemini, Cognizant, EPAM, Grid Dynamics, and HCL Tech, expanded their artificial intelligence (AI) capabilities in Q2 2023, with many collaborating with Google Cloud to enhance their offerings. Technological advancements, consumer preferences, economic developments, and revenue streams influence retail banking IT spending. IT workforce, cloud spending, production volume, and operational efficiency are essential components of retail banking IT spending. Digital transformation through technologies like artificial intelligence, data analytics, cloud native ecosystem, infrastructure as code, cloud migration, containerization technologies, threat detection, prevention technologies, data encryption, blockchain technology, and fraud protection are shaping the retail banking landscape. Customer relationship management, online transaction systems, mobile banking, and digital banking are crucial customer experience propositions. Consumer expectations for seamless digital experiences and enhanced security are driving the adoption of these technologies.

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India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Easing data was reported at 0.000 % in Mar 2025. This stayed constant from the previous number of 0.000 % for Dec 2024. India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Easing data is updated quarterly, averaging 3.571 % from Dec 2017 (Median) to Mar 2025, with 30 observations. The data reached an all-time high of 18.519 % in Jun 2022 and a record low of 0.000 % in Mar 2025. India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Easing data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD015: Bank Lending Survey: Reserve Bank of India: Loan Terms and Conditions: Retail/Personal.

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Digital Banking Platforms Market Size 2024-2028

The digital banking platforms market size is forecast to increase by USD 25.58 billion at a CAGR of 16.9% between 2023 and 2028. The market is experiencing significant growth due to the increasing use of smartphones, computers, and IoT devices for banking transactions. The convenience and accessibility offered by platforms have led to a rise in their adoption, particularly among younger generations. Additionally, the rise of artificial intelligence (AI) and machine learning technologies is enabling banks to offer more personalized services and improve customer experience. However, the market also faces challenges related to data privacy and security concerns, as well as the need for banks to adapt to evolving regulatory requirements. The implementation of blockchain as a service in banking, financial services, and insurance (BSFI) is another trend that is gaining traction, offering benefits such as increased security, transparency, and efficiency. Overall, the market is poised for continued growth as technology continues to transform the banking industry.

What will be the Size of the Market During the Forecast Period?

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Digital banking platforms have revolutionized the financial industry, offering unprecedented convenience and accessibility to customers. These platforms enable banking services to be accessed via smartphones, computers, and IoT devices, making transactions faster and more efficient. The advent of these platforms has led to a significant shift from traditional banking methods. Banks are increasingly deploying automated platforms to enhance productivity and reduce costs, providing income prospects for the financial sector. Internet connectivity plays a pivotal role in the functioning. With the widespread availability of high-speed internet, banks can offer online banking services, mobile apps, and digital wallets, enabling customers to manage their finances from anywhere, at any time. Cloud computing and cloud storage have further boosted the adoption. Banks can store customer data securely in the cloud, ensuring easy accessibility and reducing the need for on-premise infrastructure. This not only reduces costs but also enhances the user experience. Artificial intelligence (AI) is another key technology driving the growth.

Moreover, AI-powered chatbots and virtual assistants offer personalized services to customers, providing quick responses to queries and facilitating seamless transactions. Digital services offered include retail banking, inclusive banking, inter-account transfers, and telecommunication network bill payments. Fintech firms are also leveraging these platforms to offer innovative digital financial solutions. The deployment of platforms can be done through Software as a Service (SaaS) or on-premise models. SaaS offers the advantage of easy deployment and scalability, while on-premise models provide greater control and security. The use of digital banking platforms offers numerous benefits, including increased client loyalty, improved user experience, and cost savings. Banks can leverage these platforms to offer personalized services, streamline operations, and stay competitive in the digital age. In conclusion, digital banking platforms are transforming the financial industry by offering convenient, accessible, and efficient banking services. With the integration of IoT devices, AI, cloud computing, and other technologies, digital banking platforms are set to redefine the way we manage our finances.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Retail banking
  Corporate banking


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    India


  South America



  Middle East and Africa

By Type Insights

The retail banking segment is estimated to witness significant growth during the forecast period. In the retail banking sector, digital banking platforms have revolutionized the way consumers manage their finances. These automated systems enable productivity gains and cost reductions for both banks and their customers. With the shift to cloud computing and cloud storage, online banking has become a preferred choice for time-strapped individuals. According to research, an increasing number of customers prefer to conduct financial transactions online due to the convenience and time savings. Security, user-friendly login processes, site availability, seamless integration of various services, clear layout, and comprehensive information are essential features that retail users look for in digital banking platforms. The investment in application development and maintenance, system

India Auto Loan Market Report is segmented by vehicle type (passenger vehicles, commercial vehicles), by ownership (new vehicles, used vehicles), end user (individual, enterprise), and by loan provider (banks, OEMs, credit unions, other loan providers). The market sizes and forecasts for the Indian auto loan market are provided in terms of value (USD) for all the above segments.

India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Tightening data was reported at 0.000 % in Mar 2025. This stayed constant from the previous number of 0.000 % for Dec 2024. India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Tightening data is updated quarterly, averaging 0.000 % from Dec 2017 (Median) to Mar 2025, with 30 observations. The data reached an all-time high of 0.000 % in Mar 2025 and a record low of 0.000 % in Mar 2025. India RBI Forecast: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Expectation: Considerable Tightening data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD015: Bank Lending Survey: Reserve Bank of India: Loan Terms and Conditions: Retail/Personal.

In the financial year 2024, the consumption lending industry in India had the highest lending portfolio of around 90 trillion Indian rupees as compared to other lending segments like microfinance and retail lending. The lending industry in India witnessed a significant growth in recent years.