Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Singapore

Singapore

In Singapore, the Traditional Retail Banking market market is expected to see a significant increase in Net Interest Income, reaching US$10.33bn in 2024.
This projection indicates a positive trend in the sector.
Looking ahead, the market is anticipated to experience a steady growth rate of 2.11% annually from 2024 to 2028, resulting in a market volume of US$11.23bn by the end of the period.
When comparing this data globally, it is noteworthy that in China is projected to generate the highest Net Interest Income in 2024, with a staggering amount of US$2,941.0bn.
This demonstrates the dominance of the United States in the global market and highlights the potential for growth in the Traditional Retail Banking market sector in Singapore.
In Singapore, traditional retail banking is experiencing a shift towards digital platforms and mobile banking services.

Key regions: Singapore, Germany, India, Japan, South Korea

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail 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.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

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., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

The Traditional Retail Banking market in Singapore is experiencing a shift in customer preferences towards digital banking solutions, driven by the tech-savvy population and increasing demand for convenience and efficiency in financial services.

Customer preferences: Singaporean customers are increasingly opting for digital banking services due to their convenience, accessibility, and time-saving benefits. This shift is also influenced by the younger demographic's preference for seamless online and mobile banking experiences. As a result, traditional brick-and-mortar bank branches are seeing a decline in foot traffic as more customers choose to conduct their banking activities online.

Trends in the market: One prominent trend in the Traditional Retail Banking market in Singapore is the rise of neobanks and fintech companies offering innovative digital banking solutions. These digital-only banks are gaining popularity among tech-savvy consumers for their user-friendly interfaces, competitive interest rates, and personalized financial management tools. As a response, traditional banks are increasingly investing in digital transformation initiatives to enhance their online banking platforms and stay competitive in the market.

Local special circumstances: Singapore's small geographical size and high internet penetration rate make it an ideal environment for the rapid adoption of digital banking services. The government's push towards a Smart Nation initiative further accelerates the digitalization of financial services in the country. Additionally, the competitive landscape in Singapore's banking sector, with both local and international players vying for market share, drives continuous innovation and improvement in banking products and services.

Underlying macroeconomic factors: The stable and tech-friendly business environment in Singapore, coupled with the government's support for fintech innovation, creates a conducive ecosystem for the growth of digital banking services. Moreover, the increasing emphasis on cybersecurity and data privacy regulations in the country ensures a secure environment for customers to conduct their banking activities online. Overall, the Traditional Retail Banking market in Singapore is poised for further digital transformation and innovation to meet the evolving needs of customers in the digital age.

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.