Banking - Angola

Angola

In Angola, the net interest income in the Banking market sector is projected to reach US$1,475.00m in 2024.
Traditional banks dominate the market with a projected market volume of US$1,464.00m in 2024.
The net interest income is expected to show an annual growth rate (CAGR 2024-2029) of 3.31%, resulting in a market volume of US$1,736.00m by 2029.
When compared globally, China is expected to generate the highest net interest income, reaching US$4,332.0bn in 2024.
Angola's banking market is experiencing a surge in digital banking services, as more customers in the country embrace online and mobile banking platforms.

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 Angola has been experiencing significant growth and development in recent years.

Customer preferences: Angolan customers are increasingly demanding more convenient and efficient banking services, leading to a rise in digital banking solutions. This shift towards digital platforms is driven by the need for easier access to financial services and the convenience of conducting transactions online.

Trends in the market: One of the key trends in the Angolan banking market is the expansion of mobile banking services. With the high mobile penetration rate in the country, banks are investing in mobile apps and platforms to reach a wider customer base. This trend is also fueled by the growing young population in Angola, who are more tech-savvy and prefer to manage their finances through digital channels.

Local special circumstances: The banking sector in Angola is also influenced by the country's unique economic and regulatory environment. The government plays a significant role in the banking industry, with regulations and policies impacting the operations of both local and foreign banks. Additionally, the country's history of political instability and economic challenges has shaped the banking landscape, leading to a focus on risk management and compliance.

Underlying macroeconomic factors: The development of the banking market in Angola is closely tied to the overall economic growth and stability of the country. As Angola continues to diversify its economy and attract foreign investment, the banking sector is expected to expand further. Macroeconomic factors such as GDP growth, inflation rates, and foreign exchange reserves play a crucial role in shaping the future trajectory of the banking market in Angola.

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.