Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Worldwide

Worldwide

In Worldwide, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, with a projected value of US$4.20tn by 2024.
This growth is expected to continue at a compound annual growth rate (CAGR) of 4.25% from 2024 to 2028, leading to a market volume of US$4.96tn by 2028.
When comparing countries on a global scale, in China is forecasted to generate the highest Net Interest Income, with a value of US$2,251.0bn in 2024.

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

In recent years, the Traditional Retail Banking market has been experiencing significant changes and developments worldwide.

Customer preferences: Customers in the Traditional Retail Banking market are increasingly seeking convenience and personalized services. With the rise of digitalization, customers prefer seamless online and mobile banking experiences, including easy access to account information, quick transactions, and round-the-clock customer support.

Trends in the market: In the United States, the Traditional Retail Banking market is witnessing a trend towards branch consolidation and digital transformation. Many banks are closing physical branches to cut costs and investing in online and mobile banking platforms to cater to the tech-savvy population. In Europe, particularly in countries like Germany and France, there is a growing trend towards sustainable banking practices. Customers are becoming more environmentally conscious and are choosing banks that prioritize sustainability, leading to the development of green banking products and services. In Asia, countries like China and India are experiencing a surge in digital banking adoption. The large unbanked population in these countries is being targeted by digital banks offering low-cost banking solutions through mobile apps, driving the growth of the Traditional Retail Banking market.

Local special circumstances: In Latin America, countries like Brazil and Mexico are facing economic uncertainties, leading to a cautious approach by customers towards banking services. Traditional banks in these regions are focusing on building trust and offering stability to attract and retain customers in the midst of financial volatility. In Africa, the Traditional Retail Banking market is characterized by a lack of infrastructure and widespread unbanked population. As a result, there is a growing trend of partnerships between traditional banks and fintech companies to expand financial inclusion through innovative banking solutions such as mobile money and agent banking.

Underlying macroeconomic factors: Global economic fluctuations, regulatory changes, and technological advancements are key macroeconomic factors influencing the Traditional Retail Banking market worldwide. Economic stability, regulatory compliance, and investment in digital infrastructure play a crucial role in shaping the future of the banking sector across different regions.

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.