Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Ghana

Ghana

In Ghana, the Traditional Commercial Banking market market is estimated to witness a substantial increase in Net Interest Income, which is projected to reach US$5.38bn in 2024.
Moreover, this segment is expected to exhibit a steady annual growth rate (CAGR 2024-2028) of 5.24%, leading to a market volume of US$6.60bn by 2028.
When compared globally, it is noteworthy that in China is anticipated to generate the highest Net Interest Income, amounting to US$1,749.0bn in 2024.
Ghana's traditional commercial banking sector is experiencing an increased demand for digital banking services to cater to the growing tech-savvy population.

Key regions: Brazil, China, South Korea, Japan, 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 Ghana has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Ghana are increasingly turning to traditional commercial banks for their financial needs due to a growing trust in established banking institutions. The preference for face-to-face interactions and personalized services offered by traditional banks continues to drive customers to choose these institutions over digital-only alternatives.

Trends in the market: One notable trend in the Traditional Commercial Banking market in Ghana is the expansion of branch networks to rural areas. Traditional banks are focusing on financial inclusion by reaching the unbanked population in remote regions, offering basic banking services and promoting financial literacy. This trend is driven by government initiatives to improve access to financial services across the country.

Local special circumstances: Ghana's regulatory environment plays a crucial role in shaping the Traditional Commercial Banking market. The Bank of Ghana, as the central regulatory authority, sets the guidelines and standards for banking operations in the country. Compliance with regulatory requirements and capital adequacy ratios are key considerations for traditional banks operating in Ghana.

Underlying macroeconomic factors: The stable economic growth and increasing GDP in Ghana have contributed to the development of the Traditional Commercial Banking market. As the economy continues to expand, there is a growing demand for banking services, including loans for businesses and individuals. Additionally, the government's focus on infrastructure development and industrialization projects has created opportunities for traditional banks to finance these initiatives and support economic 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.