Banking - China

China

In 2024, it is projected that the Net Interest Income in the Banking market of China will reach a staggering amount of US$5.66tn.
The dominance of Traditional Banks is evident in this market, as they are expected to achieve a projected market volume of US$4.69tn in the same year.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2028) of 7.54%, resulting in a market volume of US$7.57tn by 2028.
When considering the global comparison, it is worth noting that in China will generate the highest Net Interest Income, with an estimated amount of US$5.66tn in 2024.
China's banking sector is experiencing a rapid digital transformation, with a shift towards online and mobile banking services.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Banking market in China has been experiencing significant growth and development in recent years.

Customer preferences: Chinese customers are increasingly looking for convenient and efficient banking services, leading to a surge in digital banking options. The preference for online and mobile banking platforms has been driving banks in China to invest heavily in technology to meet the growing demand for digital services.

Trends in the market: One of the prominent trends in the Chinese banking market is the rise of fintech companies offering innovative financial solutions. These fintech firms are disrupting traditional banking models and attracting a large customer base, especially among the tech-savvy younger generation. As a result, traditional banks are facing increased competition and are forced to adapt to the changing landscape by enhancing their digital capabilities.

Local special circumstances: The unique regulatory environment in China plays a crucial role in shaping the banking market. The government has been actively promoting financial inclusion and digitalization of the banking sector to support economic growth and development. Additionally, the dominance of state-owned banks in China adds a layer of complexity to the market dynamics, as these institutions have a significant market share and influence on industry trends.

Underlying macroeconomic factors: The rapid economic growth and urbanization in China have contributed to the expansion of the banking sector. As more people move to urban areas and join the middle class, there is a growing demand for a wide range of banking products and services. Moreover, the government's efforts to liberalize the financial sector and encourage foreign investment have further fueled the development of the banking market in China.

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.