Banking - Australia & Oceania

Australia & Oceania

In 2024, the projected Net Interest Income in the Banking market in Australia & Oceania is expected to reach US$124.20bn.
Within this market, Traditional Banks are expected to dominate with a projected market volume of US$88.79bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -1.53%, which would lead to a market volume of US$115.00bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, with an estimated value of US$4,332.0bn in 2024.
Australia is experiencing a rise in digital banking services, with online platforms and mobile apps gaining popularity among consumers.

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 Australia & Oceania is experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly seeking digital banking solutions that offer convenience and flexibility. With the rise of mobile banking apps and online banking platforms, customers are looking for seamless and user-friendly interfaces to manage their finances. Additionally, there is a growing demand for personalized banking services tailored to individual needs and preferences.

Trends in the market: In Australia, traditional brick-and-mortar banks are facing competition from digital-only banks that are gaining popularity among tech-savvy consumers. These digital banks offer innovative features such as real-time transaction monitoring, automated savings tools, and competitive interest rates, attracting a younger demographic of customers. Moreover, there is a trend towards sustainable banking practices, with more financial institutions in the region incorporating environmental, social, and governance (ESG) criteria into their operations.

Local special circumstances: Australia & Oceania's diverse geography and population distribution present unique challenges for the banking sector. In countries with remote and rural areas, access to banking services can be limited, leading to a greater reliance on mobile banking and alternative financial solutions. Additionally, the region's multicultural population necessitates banking services that cater to a variety of languages and cultural preferences.

Underlying macroeconomic factors: The stable economic growth in Australia & Oceania is driving increased investment in the banking sector, with financial institutions expanding their product offerings and digital capabilities to meet the evolving needs of customers. Government regulations and policies aimed at promoting financial inclusion and consumer protection are also shaping the banking landscape in the region. Furthermore, the region's strong trade relationships and strategic position in the Asia-Pacific market are attracting foreign investment and fostering international collaboration in the banking sector.

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.