Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Eastern Europe

Eastern Europe

In the Eastern European country, the Traditional Commercial Banking market market is expected to witness a significant increase in Net Interest Income.
By 2024, it is projected to reach a substantial amount of US$39.24bn.
This growth is estimated to continue at an annual growth rate (CAGR 2024-2029) of 2.70%, leading to a market volume of US$44.84bn by 2029.
When compared globally, it is worth noting that the highest amount of Net Interest Income is anticipated to be generated in China, with a staggering value of US$1,444.0bn in 2024.
In Eastern Europe, traditional commercial banking is experiencing a surge in digital transformation, with banks in countries like Poland and Hungary leading the way.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

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 Commercial Banking market in Eastern Europe has been witnessing significant developments in recent years.

Customer preferences: Customers in Eastern Europe have been showing a growing preference for digital banking solutions, prompting traditional commercial banks to invest in online and mobile banking services to stay competitive in the market.

Trends in the market: In countries like Poland and Romania, there has been a noticeable trend towards consolidation in the traditional commercial banking sector, with larger banks acquiring smaller regional players to expand their market share and customer base. This trend is driven by the need for economies of scale and increased efficiency in an increasingly competitive market environment.

Local special circumstances: In countries such as Ukraine and Bulgaria, political and economic instability has posed challenges for traditional commercial banks, leading to a more cautious approach to lending and investment activities. This has also resulted in a greater focus on risk management and compliance to navigate the uncertainties in the local market.

Underlying macroeconomic factors: The overall economic growth in Eastern Europe has been a key driver for the development of the traditional commercial banking sector. As the region continues to experience economic expansion and rising incomes, there is a growing demand for banking products and services, creating opportunities for traditional banks to innovate and expand their offerings to cater to the evolving needs of customers.

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.