Banking - Georgia

Georgia

In 2024, the projected Net Interest Income in the Banking market in Georgia is expected to reach US$0.96bn.
Traditional Banks are set to dominate the market with a projected market volume of US$0.96bn in the same year.
The Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of -6.94%, leading to a market volume of US$0.72bn by 2028.
When compared globally, in China is expected to generate the highest Net Interest Income of US$5,659.0bn in 2024.
The banking sector in Georgia is experiencing a rapid digital transformation, with the introduction of innovative technologies and online 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 Georgia has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Georgia are increasingly looking for convenient and efficient banking services. With the rapid advancement of technology, there is a growing demand for digital banking solutions that offer convenience and accessibility. Mobile banking, online transactions, and contactless payments are becoming more popular among customers as they seek faster and more streamlined banking experiences.

Trends in the market: One of the notable trends in the banking market in Georgia is the increasing competition among banks to offer innovative and personalized services to attract and retain customers. Banks are focusing on enhancing their digital capabilities, introducing new products and services, and improving customer service to stay ahead in the market. Additionally, there is a growing trend towards sustainable banking practices, with customers showing interest in environmentally friendly and socially responsible banking options.

Local special circumstances: Georgia's strategic location at the crossroads of Europe and Asia has positioned it as a key player in the region's banking sector. The country's stable political environment, business-friendly policies, and efforts to attract foreign investment have contributed to the growth of the banking market. Moreover, the government's support for digitalization and financial inclusion initiatives has created a conducive environment for the development of the banking sector in Georgia.

Underlying macroeconomic factors: The economic stability and growth of Georgia have played a crucial role in the expansion of the banking market. Favorable macroeconomic indicators, such as GDP growth, low inflation rates, and increasing foreign direct investment, have boosted confidence in the country's banking sector. Additionally, regulatory reforms aimed at enhancing transparency, efficiency, and competitiveness in the banking industry have further supported its growth and development.

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.