Digital Banks - Ghana

Ghana

Net Interest Income in the Digital Banks market is projected to reach US$0.00 in 2024.
Net Interest Income is expected to show an annual growth rate (CAGR 2024-2028) of NaN%, resulting in a market volume of US$0.00 by 2028.
In global comparison, most Net Interest Income will be generated in China (US$969,200.0m in 2024).

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

Definition:

Digital Banks refer to the emerging market for purely digital banks that offer financial services via online and mobile platforms. Unlike traditional banks, digital banks also known as neobanks, do not have store-based branches and instead rely on technology to deliver their services. But in contrast to digital-only direct banks, which focus on providing traditional banking services in an online format, the digital banks/neobanks covered in this analysis prioritize cutting-edge features and a modern user experience.
Digital Banks offer a wide range of financial products and services, including savings and checking accounts, credit cards, personal loans, and investment products, among others. They aim to provide a more convenient, accessible, and user-friendly banking experience by leveraging technology such as mobile apps and artificial intelligence. They also provide a digital identification and onboarding process, often via smartphone.
The Digital Banks market is growing rapidly as consumers increasingly demand more convenient, digitally focused financial services. Neobanks/Digital Banks are able to offer these services at a lower cost compared to traditional banks, as they have lower overhead costs and a more efficient operating model.
However, digital banks face challenges in building trust and establishing their reputation in the financial services industry. They must also navigate the complex regulatory landscape and comply with the same rules and standards as traditional banks.
Overall, the Digital Banks market represents a growing and exciting opportunity for financial services providers to deliver innovative and convenient solutions to consumers.

Structure:

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

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 Bunq, Tomorrow, and Revolut.

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Analyst Opinion

The Digital Banks market in Ghana is experiencing a significant growth trajectory, driven by various factors influencing the financial landscape in the country.

Customer preferences: Ghanaian customers are increasingly gravitating towards digital banking services due to the convenience and accessibility they offer. With the proliferation of smartphones and internet connectivity, customers are seeking efficient and user-friendly banking solutions that can meet their evolving needs.

Trends in the market: One of the notable trends in the Digital Banks market in Ghana is the emergence of innovative fintech solutions tailored to the local market. These digital banks are leveraging technology to provide services such as mobile payments, savings, and loans, catering to unbanked and underbanked populations in the country. Additionally, partnerships between traditional banks and fintech companies are becoming more common, leading to the development of hybrid banking models that combine the strengths of both sectors.

Local special circumstances: In Ghana, the regulatory environment plays a crucial role in shaping the Digital Banks market. The Bank of Ghana has been proactive in issuing guidelines and regulations to ensure the stability and security of digital banking operations. This regulatory framework has helped build trust among customers and has paved the way for the growth of digital banking services in the country.

Underlying macroeconomic factors: The macroeconomic landscape in Ghana, characterized by a growing middle class and increasing smartphone penetration, provides a fertile ground for the expansion of digital banking services. Moreover, the government's efforts to promote financial inclusion and digitization of payments are creating a conducive environment for digital banks to thrive in 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.