Key regions: United States, China, Japan, Brazil, United Kingdom
The Banking market in G7 countries is experiencing significant changes and developments.
Customer preferences: Customers in G7 countries are increasingly demanding more digital banking services, leading to a rise in online and mobile banking transactions. Convenience, speed, and accessibility are key factors driving this shift in customer preferences. Additionally, there is a growing emphasis on personalized services and tailored financial solutions to meet the diverse needs of customers across the G7 countries.
Trends in the market: In the United States, there is a trend towards consolidation in the banking sector, with larger institutions acquiring smaller banks to expand their market share. This trend is driven by the pursuit of economies of scale and the desire to offer a wider range of products and services to customers. In the United Kingdom, challenger banks are gaining traction by offering innovative digital banking solutions and competitive interest rates, challenging traditional banks in the market.
Local special circumstances: In Japan, the Banking market is characterized by a large number of regional banks catering to local communities. These banks play a vital role in supporting small and medium-sized enterprises (SMEs) and are deeply ingrained in the local economy. As a result, there is a strong emphasis on relationship banking and personalized services in Japan. In Germany, cooperative banks known as "Volksbanken" and "Raiffeisenbanken" have a significant market presence, particularly in rural areas. These banks operate on a cooperative basis and focus on serving the needs of their members.
Underlying macroeconomic factors: The low-interest-rate environment in G7 countries is impacting the profitability of banks, as net interest margins are squeezed. Central banks in the G7 countries have implemented accommodative monetary policies to stimulate economic growth, which has put pressure on banks' interest income. Additionally, regulatory changes and compliance requirements are increasing operational costs for banks across the G7 countries. As a result, banks are exploring new revenue streams and cost-cutting measures to maintain profitability in a challenging operating environment.
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.
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