Banking - Belgium

Belgium

In Belgium, the projected Net Interest Income in the Banking market is expected to reach US$23.28bn in 2024.
Traditional Banks dominate the market with a projected market volume of US$16.00bn in the same year.
Looking ahead, the Net Interest Income is anticipated to show an annual growth rate (CAGR 2024-2029) of 0.94%, resulting in a market volume of US$24.39bn by 2029.
In a global comparison, it is worth noting that China is expected to generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
Belgium's banking sector is experiencing a shift towards digitalization, with increased adoption of online banking services and mobile payment solutions.

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

Belgium, known for its waffles, chocolates, and comic strips, also boasts a dynamic banking market that is continuously evolving to meet the changing needs of its customers.

Customer preferences: Belgian customers in the banking sector are increasingly leaning towards digital solutions, preferring the convenience and efficiency offered by online and mobile banking services. This shift in preference is driven by the desire for instant access to financial information and the ability to conduct transactions remotely.

Trends in the market: One prominent trend in the Belgian banking market is the rise of fintech companies offering innovative financial products and services. These fintech firms are challenging traditional banks by providing tailored solutions, streamlined processes, and personalized customer experiences. Additionally, sustainability and ethical banking practices are gaining traction, with more customers seeking environmentally friendly and socially responsible banking options.

Local special circumstances: Belgium's unique position as the headquarters of the European Union and several international organizations contributes to the diversity of its banking market. The presence of multinational corporations and expatriates in the country creates a demand for specialized banking services that cater to the needs of a global clientele. Moreover, Belgium's bilingual nature, with Dutch and French as official languages, necessitates banks to provide services in multiple languages to serve the diverse population.

Underlying macroeconomic factors: The stability of Belgium's economy, coupled with low interest rates set by the European Central Bank, influences the banking market's growth and profitability. Economic indicators such as GDP growth, inflation rates, and unemployment levels play a crucial role in shaping consumer confidence and spending patterns, which in turn impact the demand for banking products and services. Additionally, regulatory frameworks and compliance standards set by the Belgian government and the EU influence the operations and competitiveness of banks 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.