Banking - Kazakhstan

Kazakhstan

In 2024, the projected Net Interest Income in the Banking market of Kazakhstan is expected to reach US$5.15bn.
The market is currently dominated by Traditional Banks, with a projected market volume of US$4.85bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 1.73%, resulting in a market volume of US$5.61bn by 2029.
When compared globally, it is worth noting that China is expected to generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
Kazakhstan's banking sector is experiencing a steady growth fueled by government initiatives to increase financial inclusion.

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 Kazakhstan has been experiencing significant growth and development in recent years.

Customer preferences: Kazakhstani customers are increasingly seeking digital banking solutions that offer convenience and efficiency. The demand for online and mobile banking services has been on the rise as customers look for ways to manage their finances more conveniently. Additionally, customers are showing a growing interest in personalized banking services tailored to their specific needs and preferences.

Trends in the market: One of the key trends in the Banking market in Kazakhstan is the increasing competition among banks to offer innovative financial products and services. Banks are focusing on digital transformation to enhance customer experience and streamline their operations. Moreover, there is a growing trend towards sustainable banking practices, with banks in Kazakhstan increasingly incorporating environmental and social considerations into their business strategies.

Local special circumstances: Kazakhstan's Banking market is influenced by the country's efforts to diversify its economy and attract foreign investment. The government's initiatives to modernize the financial sector and improve regulatory frameworks have created opportunities for banks to expand their operations and offer a wider range of services. Additionally, the country's strategic location as a gateway between Europe and Asia positions its banks to capitalize on regional trade and investment opportunities.

Underlying macroeconomic factors: The growth of the Banking market in Kazakhstan is also supported by favorable macroeconomic conditions, including stable economic growth and low inflation rates. The country's increasing integration into the global economy and ongoing infrastructure development projects further contribute to the expansion of the banking sector. Additionally, the government's focus on financial inclusion and literacy programs is helping to expand access to banking services across the country.

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.