Banking - Guatemala

Guatemala

In Guatemala, the Banking market is expected to witness a significant growth in Net Interest Income, reaching US$12.61bn in 2024.
The market is currently dominated by Traditional Banks, projecting a market volume of US$12.37bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit a steady annual growth rate of 4.75% from 2024 to 2029, resulting in a market volume of US$15.90bn by the end of the forecast period.
When compared globally, China is expected to generate the highest Net Interest Income, with a projected value of US$4,332.0bn in 2024.
Guatemala's banking market is experiencing a shift towards digital banking, with an increasing number of customers opting for 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

Guatemala's Banking market has been experiencing notable developments in recent years, reflecting the country's evolving economic landscape.

Customer preferences: Customers in Guatemala are increasingly seeking digital banking solutions, driving the adoption of online and mobile banking services. Convenience, accessibility, and the ability to conduct transactions remotely are key factors influencing customer preferences in the banking sector. Moreover, there is a growing demand for personalized financial products and services tailored to individual needs and preferences.

Trends in the market: One prominent trend in Guatemala's Banking market is the expansion of financial inclusion initiatives, aimed at providing banking services to underserved populations. This trend is in line with global efforts to promote financial literacy and access to banking services for all. Additionally, there is a noticeable shift towards sustainable and socially responsible banking practices, with an emphasis on environmental and social impact.

Local special circumstances: Guatemala's Banking market is uniquely influenced by the country's demographic trends, such as a young and tech-savvy population that is driving the demand for innovative banking solutions. Moreover, the presence of a large informal economy presents challenges and opportunities for banks to cater to the financial needs of individuals and businesses operating outside the formal sector.

Underlying macroeconomic factors: The growth of Guatemala's Banking market is closely tied to the country's overall economic performance, regulatory environment, and stability. Favorable macroeconomic indicators, such as steady GDP growth and low inflation rates, contribute to a positive outlook for the banking sector. Additionally, government policies and initiatives aimed at strengthening the financial sector play a crucial role in shaping the market dynamics and driving growth in the banking industry.

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.