Traditional Banks - GCC

In 2024, the projected Net Interest Income in the Traditional Banks market market in GCC is estimated to reach US$86.01bn.
It is worth noting that Traditional Commercial Banking dominates this market segment, with a projected market volume of US$61.99bn in 2024.
Looking ahead, the Net Interest Income is expected to exhibit a compound annual growth rate (CAGR 2024-2028) of 5.21%, leading to a market volume of US$105.40bn by 2028.
When comparing the global landscape, it is important to highlight that in China is anticipated to generate the highest Net Interest Income, amounting to US$4,690.0bn in 2024.
Traditional banks in the GCC are facing increasing competition from digital banking platforms, forcing them to adopt innovative technologies to stay relevant in the market.

Key regions: Singapore, United Kingdom, Germany, Brazil, United States

Definition:

The Traditional Retail and Commercial Banks 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. 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.
The traditional banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. These banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
In this market, banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. However, they also face challenges, such as increased competition and changing customer preferences, which are driving the need for continuous improvement and adaptation.
Overall, the traditional retail and commercial banking market provides a wide range of financial services to both individuals and businesses through established, trusted channels and continues to play a vital role in the financial landscape.

Structure:

The market consists of two segments:
- The Traditional Retail Banks market refers to financial services provided to individual consumers (e.g., personal loans, savings and checking accounts, credit cards, mortgages).
- The Traditional Commercial Banks market refers to financial services provided to businesses, including small and large enterprises (loans, lines of credit, other financial products specifically designed for businesses).

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, 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 and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as 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 Traditional Banks market in GCC has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in the GCC region have shown a strong preference for traditional banking services provided by established banks. They value the reliability, security, and personal touch offered by traditional banks, especially when it comes to managing their savings and investments.

Trends in the market: In Saudi Arabia, there has been a growing trend towards digital transformation in traditional banks, with many institutions investing in technology to enhance customer experience and streamline operations. This shift is driven by the increasing demand for online banking services and the need to stay competitive in a rapidly evolving market.

Local special circumstances: The UAE market has seen a rise in partnerships between traditional banks and fintech companies, as banks look to leverage the innovative solutions offered by fintechs to improve their services and attract a younger customer base. This collaboration has resulted in the introduction of new digital banking products and services that cater to the changing needs of customers in the region.

Underlying macroeconomic factors: The stability of oil prices in the GCC countries has played a significant role in shaping the Traditional Banks market. As oil prices have stabilized in recent years, the overall economic outlook in the region has improved, leading to increased confidence among consumers and businesses. This has translated into higher demand for banking services and investment opportunities, driving the growth of traditional banks in the GCC.

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.