Banking - Ghana

Ghana

The Banking market in Ghana is expected to witness a significant growth in Net Interest Income, with projections indicating that it will reach US$6.38bn in 2024.
Among the various players in the market, Traditional Banks are set to dominate with a projected market volume of US$6.38bn in the same year.
This indicates their strong presence and influence in the Banking market sector of Ghana.
Looking towards the future, Net Interest Income is anticipated to exhibit a steady annual growth rate (CAGR 2024-2028) of 4.98%.
This positive trajectory is expected to result in a market volume of US$7.75bn by 2028.
This growth highlights the potential for increased profitability and expansion within the Banking market industry in Ghana.
In a global context, it is worth noting that in China is set to generate the highest Net Interest Income, with projections estimating it to be US$5,659.0bn in 2024.
This exemplifies in China's position as a major player in the global Banking market sector, surpassing other countries in terms of financial performance.
However, it is important to acknowledge that the Ghanaian Banking market also holds significant potential for growth and development in the coming years.
Ghana's banking market is experiencing a digital revolution, with a growing number of consumers opting for 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.

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Analyst Opinion

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

Customer preferences: Customers in Ghana are increasingly looking for more convenient and accessible banking services, leading to a rise in digital banking solutions. Mobile banking and online platforms have become increasingly popular among Ghanaians, driving the demand for more tech-savvy banking options.

Trends in the market: One of the key trends in the Ghanaian banking market is the increasing competition among banks to offer innovative products and services. This trend is driven by the growing demand for personalized banking solutions and the need to stay ahead in a competitive market. Additionally, there has been a noticeable shift towards sustainable banking practices, with more banks in Ghana incorporating environmental and social factors into their business strategies.

Local special circumstances: Ghana's banking market is also influenced by local regulations and policies set by the Bank of Ghana. These regulations play a crucial role in shaping the competitive landscape of the market and ensuring the stability of the banking sector. Moreover, the country's unique demographic and economic factors, such as a young and tech-savvy population, contribute to the specific trends observed in the banking market.

Underlying macroeconomic factors: The growth of the banking market in Ghana can be attributed to several macroeconomic factors, including the overall economic stability of the country and the government's efforts to promote financial inclusion. Ghana's stable economic growth and increasing GDP per capita have created a conducive environment for the banking sector to thrive. Additionally, initiatives to improve access to financial services in rural and underserved areas have helped drive the expansion of the banking market 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.