Banking - Austria

Austria

In Austria, the Banking market is expected to witness a significant increase in Net Interest Income, reaching 2029 by 2024.
Traditional Banks are anticipated to maintain their dominance in this market segment, with a projected market volume of US$17.89bn in the same year.
The Net Interest Income is estimated to exhibit a compound annual growth rate (CAGR) of 2.32% between 2024 and 2029, resulting in a market volume of US$26.47bn by 2029.
When compared globally, it is noteworthy that China is expected to generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
This demonstrates the significant scale of China's Banking market sector in terms of Net Interest Income.
Austria's banking market is experiencing a surge in digital banking services, with traditional banks launching innovative online platforms to cater to tech-savvy customers.

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 Austria is experiencing a shift in customer preferences, trends, and local special circumstances, driven by underlying macroeconomic factors.

Customer preferences: Austrian customers are increasingly opting for digital banking services, with a growing preference for online and mobile banking solutions. This shift is fueled by the convenience and accessibility offered by digital platforms, as well as the desire for efficient and streamlined banking experiences. Additionally, customers in Austria are placing a greater emphasis on personalized services and tailored financial products, seeking more customized solutions to meet their individual needs.

Trends in the market: One prominent trend in the Austrian banking market is the rise of sustainable and socially responsible banking practices. As awareness of environmental and social issues grows, customers are showing a preference for banks that prioritize sustainability and ethical business practices. This trend is driving banks in Austria to integrate environmental, social, and governance (ESG) criteria into their operations and investment decisions, aligning with global efforts towards sustainable finance.

Local special circumstances: A unique aspect of the Austrian banking market is the strong presence of regional and cooperative banks, known as "Sparkassen" and "Raiffeisenbanken. " These institutions play a vital role in serving local communities and small businesses, offering a more personalized approach to banking services. The coexistence of large commercial banks and smaller regional players creates a diverse banking landscape in Austria, catering to a wide range of customer preferences and needs.

Underlying macroeconomic factors: The development of the banking market in Austria is also influenced by macroeconomic factors such as interest rates, regulatory environment, and economic stability. Low interest rates set by the European Central Bank have put pressure on banks' profitability, prompting them to explore alternative revenue streams and cost-cutting measures. Moreover, stringent regulatory requirements aimed at enhancing transparency and consumer protection have reshaped the operating environment for banks in Austria, driving them to adapt to evolving compliance standards. Economic stability and growth prospects in Austria play a crucial role in shaping the demand for banking services, with factors such as GDP growth, unemployment rates, and consumer confidence impacting the overall performance of 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.