Banking - Netherlands

Netherlands

In 2024, in the Netherlands is projected to see a Net Interest Income of US$83.87bn in the Banking market.
Traditional Banks are expected to dominate the market with a projected market volume of US$50.80bn in the same year.
The Net Interest Income is anticipated to exhibit a compound annual growth rate (CAGR 2024-2028) of -3.66%.
This growth rate will lead to a market volume of US$72.26bn by 2028.
When compared globally, in China is forecasted to generate the highest Net Interest Income, amounting to US$5,659.0bn in 2024.
The Netherlands' banking market is experiencing a shift towards digital banking services, with an increasing number of customers opting for online and mobile banking platforms.

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 Netherlands is experiencing significant shifts and developments, driven by changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Netherlands are increasingly demanding digital and mobile banking services, leading to a rise in online banking activities and the adoption of fintech solutions. Convenience, efficiency, and personalized services are key factors driving customer preferences in the banking sector.

Trends in the market: One prominent trend in the Dutch banking market is the growing popularity of sustainable and ethical banking practices. Customers are showing a preference for banks that prioritize environmental and social responsibility, leading to the development of green banking products and services. Additionally, open banking initiatives and collaborations with fintech companies are reshaping the competitive landscape and driving innovation in the sector.

Local special circumstances: The Netherlands has a well-established banking sector with a high level of competition among traditional banks, online banks, and fintech startups. The country's strong regulatory framework and stable economy create a conducive environment for banking activities. Moreover, the Dutch population's high level of financial literacy and tech-savviness further contribute to the dynamic nature of the banking market.

Underlying macroeconomic factors: Macroeconomic factors such as low interest rates, economic stability, and demographic changes play a significant role in shaping the banking market in the Netherlands. The low-interest-rate environment challenges banks to find new revenue streams and optimize their operational efficiency. Economic stability and a favorable business climate support the growth of the banking sector, while demographic shifts, such as an aging population, influence the demand for retirement and wealth management services.

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.