Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - France

France

In France, the net interest income in the Traditional Retail Banking market market is expected to reach US$42.35bn in 2024.
It is projected to exhibit a compound annual growth rate (CAGR 2024-2028) of -1.98%, leading to a market volume of US$39.10bn by 2028.
When compared globally, in China is anticipated to generate the highest net interest income, amounting to US$2,941.0bn in 2024.
The traditional retail banking sector in France is facing increasing competition from digital banks and online financial services.

Key regions: Singapore, Germany, India, Japan, South Korea

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

Structure:
The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:
The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

The Traditional Retail Banking market in France is experiencing a shift in customer preferences, trends, and local special circumstances that are shaping its development.

Customer preferences: Customers in France are increasingly seeking convenience and personalized services in their banking experience. With the rise of digitalization, there is a growing demand for online and mobile banking services. Customers value seamless and user-friendly interfaces that allow them to manage their finances efficiently. Additionally, there is a preference for banks that offer a wide range of financial products and services under one roof, catering to diverse needs.

Trends in the market: One prominent trend in the Traditional Retail Banking market in France is the consolidation of brick-and-mortar branches. Banks are optimizing their physical presence by closing underperforming branches and investing in digital channels. This trend is driven by the cost-saving benefits of digital banking and the changing behavior of customers who are increasingly turning to online platforms for their banking needs. Another trend is the focus on sustainability and ethical banking practices, with customers showing a preference for banks that align with their values.

Local special circumstances: France has a highly competitive banking sector with both domestic and international players vying for market share. This competitive landscape is driving innovation in products and services as banks strive to differentiate themselves. Moreover, the regulatory environment in France plays a significant role in shaping the Traditional Retail Banking market. Compliance with stringent regulations regarding consumer protection and data privacy is a key consideration for banks operating in the country.

Underlying macroeconomic factors: The development of the Traditional Retail Banking market in France is also influenced by macroeconomic factors such as interest rates, economic growth, and demographic shifts. Low-interest rates set by the European Central Bank impact banks' profitability and lending practices. Economic growth and stability drive consumer confidence and spending patterns, affecting the demand for banking services. Demographic changes, such as an aging population and an increase in digital-savvy millennials, are reshaping the market dynamics and prompting banks to adapt their strategies to cater to different customer segments.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.