Banking - France

France

In France, the projected Net Interest Income in the Banking market for 2024 is estimated to reach US$110.50bn.
Traditional Banks are expected to dominate the market, with a projected market volume of US$79.08bn in 2024.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of -1.27%, leading to a market volume of US$105.00bn by 2028.
Comparatively, in China is expected to generate the highest Net Interest Income globally, with US$5,659.0bn in 2024.
France's banking market is experiencing a shift towards digital banking as consumers increasingly embrace online and mobile 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 France has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in France have shown a growing preference for digital banking services, leading to an increase in online and mobile banking transactions. This shift in preference is driven by the convenience and accessibility offered by digital platforms, as well as the desire for more personalized and efficient banking experiences.

Trends in the market: One prominent trend in the French Banking market is the consolidation of smaller banks and branches, as larger financial institutions continue to expand their market share through mergers and acquisitions. This trend is influenced by the need for cost efficiency and the increasing competition in the industry, pushing smaller players to join forces to remain competitive. Another trend shaping the Banking market in France is the focus on sustainable and socially responsible banking practices. With growing awareness of environmental and social issues, customers are increasingly seeking banks that prioritize ethical investments and demonstrate a commitment to sustainability. This trend has led many banks in France to integrate environmental, social, and governance (ESG) criteria into their business strategies and offerings.

Local special circumstances: France's regulatory environment plays a significant role in shaping the Banking market. The country has stringent regulations and compliance requirements for financial institutions, which influence the products and services offered to customers. Additionally, cultural factors such as a preference for personalized customer service and relationship-based banking also impact the market dynamics in France.

Underlying macroeconomic factors: The economic landscape in France, including factors such as interest rates, inflation, and GDP growth, has a direct impact on the Banking market. Low interest rates set by the European Central Bank have put pressure on banks' profit margins, leading to a focus on cost reduction and efficiency measures. Economic stability and consumer confidence also play a crucial role in driving borrowing and investment activities 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.