Between 1999 and 2003, the number of banks in the U.S. fell more than 9%, while the number of branches increased 5.8%. Customer preferences have been loud and clear: sit down with us, listen to us, and get to know us. Many banks have tried to respond by making branches more comfortable, and creating more accessible customer service. The environment being created by banks today in their branches is more closely aligned with a retail shopping experience than a traditional banking experience.

This report analyzes the changes and trends in the retail banking industry in the United States, such as the customization of products to reach specific demographics and the effects of Internet on retail banking. It discusses consumers’ continuing desire to perform complex transactions at branches, but also explores trends in using the Internet to perform banking activities. It also discusses industry consolidation, the shrinking supply structure, and trends in advertising fight for brand awareness. The report takes in-depth look at different channels of distribution, including standalone branches, in-store branches and the Internet.

Mintel carried out specially commissioned consumer research among a representative sample of 4,326 adults for the purposes of this report. The research focused on the customer attitudes toward their bank, banking products and the delivery of those products.

The final section of this report looks at the future, assessing where market trends are headed, and forecasting market size changes through 2008.

For the purpose of this report, retail banking includes services provided at a retail location by banks that might offer the following products: checking accounts, savings accounts, certificates of deposit (CDs), individual retirement accounts (IRAs), loans, mortgages, and/or money market accounts. This report does not focus on brokerage services, stock trading capabilities, or education investment vehicles.