Banking - Bangladesh

Bangladesh

In Bangladesh, the Net Interest Income in the Banking market is forecasted to reach US$41.86bn in 2024.
Traditional Banks dominate the market with a projected market volume of US$36.83bn in 2024.
The Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.88%, resulting in a market volume of US$55.71bn by 2029.
When compared globally, in China is expected to generate the highest Net Interest Income with US$4,332.0bn in 2024.
The banking sector in Bangladesh is witnessing a rising trend of digital innovation, with mobile banking services becoming increasingly popular among the population.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.

Structure:

The market consists of two segments:
- The Traditional Banking market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises 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.

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 & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

Bangladesh's Banking market is experiencing significant growth and development in recent years.

Customer preferences: Customers in Bangladesh are increasingly leaning towards digital banking solutions, driven by the convenience and accessibility they offer. Mobile banking and online transactions are becoming more popular among the tech-savvy population, leading to a shift from traditional brick-and-mortar banking to virtual platforms.

Trends in the market: One prominent trend in the Banking market in Bangladesh is the rise of fintech companies offering innovative financial services. These fintech firms are disrupting the traditional banking sector by providing efficient and user-friendly solutions tailored to the needs of the younger generation. Moreover, there is a growing trend of banks expanding their reach to rural areas, tapping into previously underserved markets and driving financial inclusion across the country.

Local special circumstances: Bangladesh's unique demographic dividend, with a large young population, is fueling the demand for banking services tailored to the digital-native generation. The government's push towards financial inclusion and regulatory reforms to promote a competitive banking environment are also shaping the market dynamics in the country. Additionally, the increasing penetration of smartphones and internet connectivity is playing a crucial role in driving the adoption of digital banking solutions among the population.

Underlying macroeconomic factors: The stable economic growth and rising per capita income in Bangladesh are contributing to the expansion of the Banking market. As more people enter the formal banking system, there is a growing demand for a wide range of financial products and services. The government's focus on infrastructure development and initiatives to boost the overall economy are creating a favorable environment for the banking sector to thrive and cater to the evolving needs of customers across the country.

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.