Banking - Romania

Romania

In Romania, the Net Interest Income in the Banking market is projected to reach US$23.50bn in 2024.
Traditional Banks dominate the market with a projected market volume of US$21.58bn in the same year.
Looking ahead, the Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of 2.96%, resulting in a market volume of US$27.19bn by 2029.
When compared globally, in China is expected to generate the highest Net Interest Income, with US$4,332.0bn in 2024.
Romania's banking sector is experiencing a shift towards digitalization, with a growing number of customers opting for 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.

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Analyst Opinion

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

Customer preferences: Customers in Romania are increasingly seeking digital banking solutions, leading to a rise in online banking services and mobile banking apps. Convenience, speed, and ease of access to financial services are driving this shift towards digital channels. Additionally, there is a growing demand for personalized banking products and services tailored to individual customer needs and preferences.

Trends in the market: One prominent trend in the Romanian Banking market is the increasing competition among banks, leading to a focus on innovation and technology to differentiate services. Banks are investing in digital transformation, automation, and artificial intelligence to enhance customer experience and streamline operations. Moreover, there is a growing trend towards sustainable and socially responsible banking practices, with more banks offering green financial products and services.

Local special circumstances: Romania's Banking market is also influenced by local regulatory frameworks and government policies. The National Bank of Romania plays a crucial role in overseeing the banking sector and ensuring stability and compliance. Moreover, the country's economic landscape and consumer behavior impact the strategies and offerings of banks operating in Romania.

Underlying macroeconomic factors: The growth of the Banking market in Romania is closely tied to the country's overall economic performance. Factors such as GDP growth, inflation rates, and interest rates influence the demand for banking services and the overall profitability of banks. Additionally, external factors like global economic trends and geopolitical developments can impact the stability and growth of the banking sector in Romania.

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.