Banking - Ukraine

Ukraine

In 2024, the projected Net Interest Income in the Banking market of Ukraine is expected to reach US$36.37bn.
Traditional Banks are set to dominate this market segment, with a projected market volume of US$34.49bn in the same year.
The Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 10.43%, resulting in a market volume of US$54.08bn by 2028.
When compared globally, it is noteworthy that in China is expected to generate the highest Net Interest Income, amounting to US$5,659.0bn in 2024.
The Ukrainian banking market is experiencing a shift towards digital banking, with an increasing number of customers opting for online and mobile banking services.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. 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.

Structure:

The market consists of two segments:
- The Traditional Banking 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.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises 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.

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 & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

The Banking market in Ukraine has been experiencing significant growth and transformation in recent years.

Customer preferences: Customers in Ukraine are increasingly looking for convenient and digital banking solutions. The rise of online banking platforms and mobile applications has led to a shift in customer preferences towards more efficient and accessible banking services. Additionally, there is a growing demand for personalized financial products tailored to individual needs and preferences.

Trends in the market: One of the notable trends in the Banking market in Ukraine is the increasing competition among banks to offer innovative digital services. Banks are investing in technology to enhance customer experience, streamline processes, and improve efficiency. Moreover, there is a trend towards collaboration between traditional banks and fintech companies to introduce new and advanced financial solutions to the market.

Local special circumstances: Political and economic instability in Ukraine has had a significant impact on the Banking market. The ongoing reforms in the banking sector, aimed at increasing transparency and stability, have created both challenges and opportunities for banks operating in the country. Additionally, the high level of non-performing loans and the need for stricter regulations have influenced the strategies of banks in Ukraine.

Underlying macroeconomic factors: The macroeconomic environment in Ukraine, including factors such as inflation, exchange rates, and GDP growth, plays a crucial role in shaping the Banking market. Economic fluctuations and uncertainty can affect the performance and profitability of banks, as well as influence customer behavior and preferences. Therefore, banks in Ukraine need to closely monitor and adapt to the changing macroeconomic conditions to ensure sustainable growth and success in the market.

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.