Banking - Lithuania

Lithuania

In Lithuania, the projected Net Interest Income in the Banking market for 2024 is estimated to reach US$393.00m.
The market is primarily dominated by Traditional Banks, which are expected to have a projected market volume of US$294.60m in 2024.
Looking ahead, the Net Interest Income is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.31%, resulting in a market volume of US$419.50m by 2029.
When compared globally, it is noteworthy that China is expected to generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
Lithuania's banking market is experiencing a surge in digital banking services, with increased customer adoption and a growing number of fintech partnerships.

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

Customer preferences: Customers in Lithuania are increasingly shifting towards digital banking solutions, preferring the convenience and accessibility offered by online and mobile banking services. This trend is in line with global preferences, where customers are seeking seamless and efficient banking experiences.

Trends in the market: One notable trend in the Lithuanian banking market is the rise of fintech companies offering innovative financial solutions. These fintech firms are challenging traditional banks by providing alternative payment methods, peer-to-peer lending platforms, and other digital services. This trend is reshaping the competitive landscape of the banking sector in Lithuania.

Local special circumstances: Lithuania's strategic location as a gateway between East and West has attracted a growing number of foreign banks to establish their presence in the country. This influx of international banks has not only increased competition but has also brought in expertise and best practices from other markets. Additionally, Lithuania's membership in the European Union has facilitated cross-border banking activities and regulatory harmonization.

Underlying macroeconomic factors: The overall economic stability and growth in Lithuania have positively impacted the banking sector. As the economy expands, there is an increased demand for banking services such as loans, mortgages, and investment products. Furthermore, favorable government policies and regulatory frameworks have created a conducive environment for the banking industry to thrive.

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.