Banking - Hungary

Hungary

In Hungary, the projected Net Interest Income in the Banking market for 2024 is expected to reach US$11.61bn.
Traditional Banks are expected to dominate this market segment, with a projected market volume of US$9.83bn in 2024.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 4.65%, leading to a market volume of US$14.57bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, reaching US$4,332.0bn in 2024.
Hungary's banking sector is experiencing a surge in 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

Hungary's Banking market has been experiencing significant growth and development in recent years, driven by various factors influencing customer preferences and market trends.

Customer preferences: Customers in Hungary are increasingly seeking digital banking solutions that offer convenience, efficiency, and security. The demand for online and mobile banking services has been on the rise, with customers preferring to conduct transactions and manage their finances remotely. Moreover, there is a growing interest in personalized banking services that cater to individual needs and preferences.

Trends in the market: One notable trend in Hungary's Banking market is the increasing competition among both traditional banks and digital fintech companies. This competition has led to innovation in products and services, as well as competitive pricing strategies to attract and retain customers. Additionally, there is a growing emphasis on sustainability and ethical banking practices, with more customers opting for banks that prioritize environmental and social responsibility.

Local special circumstances: Hungary's Banking market is also influenced by local regulations and government initiatives aimed at promoting financial inclusion and stability. The government has implemented various measures to support the banking sector and ensure compliance with international standards. Additionally, the country's economic growth and stability play a crucial role in shaping the banking landscape and consumer behavior.

Underlying macroeconomic factors: The overall economic environment in Hungary, including factors such as GDP growth, inflation rates, and unemployment levels, has a significant impact on the Banking market. Economic stability and growth contribute to increased consumer confidence and spending, which in turn drive demand for banking products and services. Moreover, external factors such as global economic trends and geopolitical developments can also influence the market dynamics in Hungary.

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.