Banking - Denmark

Denmark

In 2024, it is projected that the Net Interest Income in the Banking market in Denmark will reach US$53.35bn.
The market is predominantly dominated by Traditional Banks, which are expected to have a market volume of US$33.18bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 4.46%, leading to a market volume of US$66.35bn by 2029.
When compared to other countries globally, China is expected to generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
In Denmark, the banking market is witnessing a shift towards digital banking services, with a growing number of consumers opting for online and mobile banking 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

Denmark's Banking market has been experiencing significant shifts and developments in recent years.

Customer preferences: Customers in Denmark are increasingly gravitating towards digital banking solutions, favoring convenience and accessibility. The demand for online and mobile banking services has been on the rise, prompting traditional banks to enhance their digital offerings to meet customer expectations. Additionally, there is a growing interest in sustainable banking practices among Danish consumers, leading to an increased focus on environmental and social responsibility in the banking sector.

Trends in the market: One prominent trend in the Danish banking market is the emergence of fintech companies challenging traditional banking institutions. These fintech firms are leveraging technology to offer innovative financial products and services, attracting tech-savvy customers with their user-friendly interfaces and competitive rates. Moreover, there is a growing trend towards collaboration between banks and fintech companies to drive digital innovation and improve customer experience. This trend is reshaping the competitive landscape of the banking sector in Denmark.

Local special circumstances: Denmark's banking market is characterized by a high level of digitalization and innovation, driven by the country's advanced technological infrastructure and tech-savvy population. The regulatory environment in Denmark also plays a significant role in shaping the banking sector, with stringent regulations promoting financial stability and consumer protection. Furthermore, the Danish banking market is known for its strong emphasis on sustainability and ethical banking practices, reflecting the values of the local population.

Underlying macroeconomic factors: The development of the banking market in Denmark is influenced by various macroeconomic factors, including economic growth, interest rates, and regulatory changes. The low-interest-rate environment in Denmark has implications for banks' profitability and lending activities, prompting them to explore new revenue streams and cost-cutting measures. Economic conditions, such as GDP growth and unemployment rates, also impact consumer confidence and borrowing behavior, shaping the overall performance of the banking sector in the country. Additionally, regulatory developments at the national and European levels have a significant impact on the operations and strategic direction of banks in Denmark.

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.