Traditional Banks - Ghana

Ghana

In 2024, the projected Net Interest Income in the Traditional Banks market market of Ghana is estimated to reach US$6.38bn.
It is worth noting that Traditional Commercial Banking dominates this market segment in the country, with a projected market volume of US$5.38bn in 2024.
Looking ahead, the Net Interest Income is expected to display an annual growth rate (CAGR 2024-2028) of 4.98%, leading to a market volume of US$7.75bn by 2028.
When considering global comparisons, it is noteworthy that in China is anticipated to generate the highest Net Interest Income of US$4,690.0bn in 2024.
Traditional banks in Ghana are facing increasing competition from fintech companies, forcing them to invest in digital banking solutions.

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.

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Analyst Opinion

The Traditional Banks market in Ghana has been experiencing significant developments and trends in recent years.

Customer preferences: Customers in Ghana are increasingly seeking personalized banking services, leading traditional banks to focus on enhancing customer experience through digital channels and innovative products. The demand for convenient and efficient banking solutions is driving the adoption of online and mobile banking services among customers.

Trends in the market: One noticeable trend in the Traditional Banks market in Ghana is the expansion of branch networks to reach unbanked populations in rural areas. Traditional banks are also investing in technology to streamline operations and improve service delivery. Additionally, partnerships with fintech companies are becoming more common as banks look to leverage technology to offer a wider range of financial products and services.

Local special circumstances: Ghana's banking sector has been undergoing reforms to strengthen the financial system and improve regulatory oversight. The Bank of Ghana's efforts to enhance governance and risk management practices in the banking industry are shaping the strategies of traditional banks in the country. Moreover, the increasing competition from non-bank financial institutions is prompting traditional banks to innovate and differentiate their offerings to remain competitive.

Underlying macroeconomic factors: The macroeconomic environment in Ghana, including economic growth, inflation rates, and regulatory policies, plays a significant role in shaping the Traditional Banks market. Factors such as GDP growth, interest rates, and foreign exchange stability influence the performance and profitability of traditional banks in the country. As Ghana's economy continues to grow, traditional banks are presented with opportunities to expand their market presence and increase their customer base.

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.