Banking - Burkina Faso

Burkina Faso

In Burkina Faso, the net interest income in the Banking market is forecasted to reach US$1,396.00m in 2024.
The market is currently dominated by traditional banks, with a projected market volume of US$1,389.00m in the same year.
Looking ahead, the net interest income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.96%, leading to a market volume of US$1,778.00m 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.
The banking sector in Burkina Faso is experiencing a shift towards digital banking solutions to cater to the diverse and remote population.

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 Burkina Faso has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Burkina Faso are increasingly demanding more convenient and accessible banking services, leading to a rise in digital banking solutions. Mobile banking and online platforms are becoming more popular among the population, driving the shift towards a more technology-driven banking sector.

Trends in the market: One of the key trends in the Banking market in Burkina Faso is the increasing competition among banks to offer innovative products and services to attract and retain customers. This has led to a diversification of banking offerings, including tailored products for different customer segments such as small businesses and rural populations. Additionally, there is a growing trend towards sustainable banking practices, with banks in Burkina Faso focusing on environmental and social responsibility in their operations.

Local special circumstances: Burkina Faso's banking sector is unique due to its relatively small size and the presence of both traditional banks and microfinance institutions catering to the needs of the unbanked population. The country's financial inclusion efforts have been driving growth in the banking sector, with initiatives to expand access to financial services in rural and underserved areas. Moreover, the government plays a significant role in regulating the banking industry and promoting financial stability in Burkina Faso.

Underlying macroeconomic factors: The growth of the Banking market in Burkina Faso is also influenced by macroeconomic factors such as GDP growth, inflation rates, and government policies. A stable macroeconomic environment and efforts to improve the business climate have been supporting the expansion of the banking sector. Additionally, the country's young and growing population presents opportunities for banks to tap into a large customer base with evolving financial needs.

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.