Traditional Banks - Montenegro

Montenegro

In Montenegro, the Net Interest Income in the Traditional Banks market market is projected to reach US$453.50m by 2024.
It is worth noting that Traditional Retail Banking is the dominant player in this market, with a projected market volume of US$280.10m by 2024.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate of 0.09% (CAGR 2024-2029), resulting in a market volume of US$455.60m by 2029.
When compared globally, it is interesting to observe that in China will generate the highest Net Interest Income, amounting to US$3,869.0bn in 2024.
Montenegro's traditional banks are facing increasing competition from digital banking platforms, challenging their market dominance.

Key regions: Germany, United Kingdom, France, Japan, China

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 Montenegro has been experiencing notable developments in recent years.

Customer preferences: Customers in Montenegro have shown a growing interest in traditional banking services, opting for the reliability and stability offered by established banks. They value personalized customer service and a wide range of financial products, including savings accounts, loans, and investment opportunities.

Trends in the market: One key trend in the Traditional Banks market in Montenegro is the increasing digitization of services. Traditional banks are investing in online and mobile banking platforms to cater to the tech-savvy population and improve overall customer experience. Another trend is the expansion of branch networks to reach customers in both urban and rural areas, enhancing accessibility to banking services.

Local special circumstances: Montenegro's small but growing economy plays a significant role in shaping the Traditional Banks market. The country's efforts to attract foreign investment and promote economic growth have led to an increase in demand for banking services. Additionally, Montenegro's status as a candidate country for EU membership has influenced regulatory changes in the banking sector, aligning it with international standards.

Underlying macroeconomic factors: Montenegro's stable economic growth, supported by sectors such as tourism and real estate, has contributed to a positive outlook for the Traditional Banks market. The country's strategic location and potential for further development make it an attractive market for both domestic and foreign banks. Moreover, government initiatives to enhance financial literacy and promote banking services have bolstered the sector's growth.

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.