Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Thailand

Thailand

In Thailand, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching US$19.72bn units by 2024.
This growth is projected to continue with an annual growth rate (CAGR 2024-2028) of 1.89%, leading to a market volume of US$21.25bn units by 2028.
When compared globally, in China is anticipated to generate the highest Net Interest Income, amounting to US$2,941.0bn units in 2024.
Thailand's traditional retail banking market is seeing a shift towards digital banking services to cater to the tech-savvy population.

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

Thailand's Traditional Retail Banking market is experiencing significant growth and transformation in response to changing customer preferences and local special circumstances.

Customer preferences: Customers in Thailand are increasingly seeking convenient and personalized banking services. They value seamless digital experiences, such as online and mobile banking, which allow for easy access to their accounts and transactions. Additionally, there is a growing demand for tailored financial products and services that cater to individual needs and preferences.

Trends in the market: One of the key trends in the Traditional Retail Banking market in Thailand is the shift towards digitalization. Banks are investing in technology to enhance their digital capabilities and offer innovative solutions to customers. This includes the development of mobile banking apps, digital payment platforms, and AI-powered customer service tools. Another notable trend is the expansion of financial inclusion initiatives to reach unbanked populations in rural areas, driving growth in the retail banking sector.

Local special circumstances: Thailand's banking sector is heavily influenced by the country's unique cultural and economic landscape. The growing middle class and increasing urbanization are driving demand for banking services, while the government's push for financial inclusion is opening up opportunities for banks to expand their customer base. Moreover, the competitive nature of the market is leading to greater innovation and collaboration among traditional banks and fintech companies.

Underlying macroeconomic factors: The growth of Thailand's Traditional Retail Banking market is also supported by positive macroeconomic factors. A stable economic environment, low inflation rates, and government initiatives to promote economic growth are contributing to the overall stability of the banking sector. Additionally, favorable interest rates and increasing foreign investment are fueling lending activities and driving revenue growth for banks in Thailand.

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.