Banking - Finland

Finland

In Finland, the Net Interest Income in the Banking market is projected to reach US$14.39bn in 2024.
Traditional Banks dominate the market with a projected market volume of US$10.14bn in the same year.
It is expected that the Net Interest Income will show an annual growth rate (CAGR 2024-2029) of 0.86%, resulting in a market volume of US$15.02bn by 2029.
In the global comparison, China is expected to generate the most Net Interest Income, amounting to US$4,332.0bn in 2024.
The banking sector in Finland is experiencing a rise in digital banking services, with increasing adoption of mobile banking apps and online platforms.

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

Over the past few years, the Banking market in Finland has been witnessing significant growth and development.

Customer preferences: Customers in Finland are increasingly seeking digital banking solutions, such as mobile banking apps and online banking platforms, due to their convenience and accessibility. This shift towards digital channels has led banks in Finland to invest more in technology and innovation to meet customer demands and stay competitive in the market.

Trends in the market: One notable trend in the Finnish Banking market is the increasing focus on sustainability and ethical banking practices. Customers are becoming more conscious of the environmental and social impact of their banking activities, leading to a growing demand for green investment options and responsible banking services. As a result, banks in Finland are incorporating sustainability principles into their operations and offerings to attract and retain customers.

Local special circumstances: Finland's relatively small population and highly concentrated banking sector have created a unique competitive landscape in the country. With a few major banks dominating the market, competition is intense, leading to innovative product offerings and competitive pricing strategies to attract customers. Additionally, Finland's strong regulatory environment ensures stability and trust in the banking sector, further influencing customer preferences and market trends.

Underlying macroeconomic factors: The stable economic growth and low interest rate environment in Finland have contributed to the development of the Banking market. Low borrowing costs have increased demand for loans and mortgages, driving revenue growth for banks. Moreover, the country's robust financial infrastructure and high level of digitalization have facilitated the expansion of banking services, making it easier for customers to access and manage their finances.

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.