The Community Banking market is expected to grow by $207.21bn by 2027, study shows

By Puja Sharma

The community banking market is estimated to grow by  $207.21 billion from 2022 to 2027, growing at a CAGR of 5.3%. The community banking market is fragmented owing to the presence of many global and regional companies.

The reports categorize the global community banking market as a part of the global specialized consumer services market. The parent global specialized consumer services market covers revenue generated by consumer service providers, including residential services, home security services, legal services, personal services, renovation and community banking, consumer auction services, wedding services, and funeral services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Community banking market: key drivers

The rise in the adoption of microlending in developing nations is notably driving market growth, although factors such as a lack of awareness about community banking services may impede the market growth.Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key community banking market driver

The rise in the adoption of microlending in developing nations is notably driving the market growth. Microlending is changing the lifestyle of various people in the developing nations of APAC, South America, and MEA by helping them financially. In addition, a surge in government initiatives for microlending in various countries is driving the growth of the global microlending market. Furthermore, the increase in the number of microlenders helps various emerging countries to reduce poverty and also improves the standard of living of poor people.

Moreover, various farmers in African countries are adopting microlending for buying crops, which will drive the global microlending market growth. In addition, people in rural areas are availing of loans from microlenders to set up their own businesses and raise their standard of living, which propels the growth of the market. This trend is expected to continue during the forecast period.

Significant community banking market trend

The rising adoption of digital platforms is the key trend in the market.Due to the growing use of smartphones, computers, Internet access, Internet of Things (IoT) devices, and artificial intelligence, there is an increasing demand for digital banking. Banks and financial institutions are shifting from conventional networks to digital and automated platforms as they offer several benefits, including higher productivity, cost savings, and improved income possibilities.

The need for these technologies has expanded in the market as a result of the recent expansion of cloud computing and storage. The COVID-19 pandemic has increased online banking activity and forced organizations and individuals who had previously opposed Internet banking to adopt digital banking as their new standard procedure, which will positively impact the growth of the global market in focus during the forecast period.