Banking - Benelux

Benelux

In 2024, the projected Net Interest Income in the Banking market in Benelux is expected to reach US$83.96bn.
Traditional Banks dominate this market segment, with a projected market volume of US$56.06bn in the same year.
Looking ahead, the Net Interest Income is anticipated to show an annual growth rate (CAGR 2024-2029) of 1.71%, resulting in a market volume of US$91.38bn 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.
In the Benelux banking market, digital banking is gaining popularity, with customers increasingly opting for online banking services.

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 Benelux has been experiencing significant developments and trends in recent years.

Customer preferences: Customers in the Benelux region are increasingly looking for convenient and digital banking solutions. The demand for online banking services, mobile apps, and seamless digital transactions has been on the rise. Customers value quick and easy access to their accounts, as well as personalized and efficient customer service.

Trends in the market: One of the key trends in the Banking market in Benelux is the growing popularity of sustainable and socially responsible banking. Customers are showing a preference for banks that are committed to environmental and social causes. This trend is driving banks in the region to incorporate sustainability practices into their operations and offerings.

Local special circumstances: The Benelux region is known for its high level of economic development and stability. This has created a competitive banking market with a strong focus on innovation and customer satisfaction. Additionally, the close proximity and economic integration of Belgium, the Netherlands, and Luxembourg have led to a unique banking environment with cross-border opportunities and challenges.

Underlying macroeconomic factors: The stable economic growth and low interest rate environment in the Benelux region have influenced the Banking market dynamics. Banks are facing margin pressures due to the low interest rates, prompting them to explore new revenue streams and cost-cutting measures. The regulatory environment, including compliance with EU banking regulations, also plays a significant role in shaping the banking landscape in Benelux.

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.