Banking - Sweden

Sweden

In 2024, the projected Net Interest Income in the Banking market in Sweden is expected to reach US$52.46bn.
It is worth noting that Traditional Banks dominate the market with a projected market volume of US$42.14bn in 2024.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2028) of 4.61%.
This growth will result in a market volume of US$62.83bn by 2028.
When compared globally, it is noteworthy that in China will generate the highest Net Interest Income, amounting to US$5,659.0bn in 2024.
Sweden's banking market is increasingly focusing on sustainable finance, with banks offering green loans and investing in renewable energy projects.

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 Sweden has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Sweden are increasingly leaning towards digital banking solutions, with a growing preference for online and mobile banking services. This shift is driven by the convenience and accessibility offered by digital platforms, allowing customers to manage their finances anytime, anywhere.

Trends in the market: One of the key trends in the Swedish banking market is the rise of fintech companies offering innovative financial solutions. These fintech firms are challenging traditional banks by providing more efficient and customer-centric services. Additionally, there is a growing emphasis on sustainable banking practices in Sweden, with banks incorporating environmental and social considerations into their operations.

Local special circumstances: Sweden has a highly digitized and tech-savvy population, which has contributed to the rapid adoption of digital banking services. The country also has a strong regulatory framework that promotes competition and innovation in the banking sector. Moreover, Swedish banks have been early adopters of open banking initiatives, allowing for greater collaboration and integration with third-party financial service providers.

Underlying macroeconomic factors: The development of the banking market in Sweden is also influenced by macroeconomic factors such as low interest rates and economic stability. Low interest rates have encouraged borrowing and investment, driving demand for banking services. Furthermore, Sweden's stable economy and high standard of living have increased consumer confidence and overall financial activity 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.