Banking - Morocco

Morocco

In 2024, it is projected that the net interest income in the Banking market in Morocco will reach US$13.20bn.
The market is predominantly dominated by traditional banks, with an estimated market volume of US$12.63bn in the same year.
Looking ahead, the net interest income is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 8.21%, resulting in a market volume of US$19.58bn by 2029.
In comparison to other countries globally, China is anticipated to generate the highest net interest income, amounting to US$4,332.0bn in 2024.
Morocco's banking market is experiencing a surge in digital banking services, as more customers seek convenient and secure ways to manage their finances.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

Over the past few years, the Banking market in Morocco has witnessed significant growth and development, reflecting the changing dynamics of the financial sector in the country.

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

Trends in the market: One of the notable trends in the Moroccan banking market is the expansion of Islamic banking services to cater to the needs of the Muslim population. This trend aligns with the global rise of Islamic finance and reflects the efforts of banks in Morocco to diversify their product offerings. Moreover, there is a growing focus on sustainable finance and socially responsible banking practices in line with global trends towards environmental and social responsibility.

Local special circumstances: Morocco's strategic location as a gateway between Africa and Europe positions its banking sector as a key player in facilitating cross-border transactions and trade finance. The country's stable economic growth and ongoing structural reforms create a conducive environment for the banking industry to thrive. Furthermore, the government's initiatives to promote financial inclusion and support small and medium enterprises contribute to the overall development of the banking market in Morocco.

Underlying macroeconomic factors: The macroeconomic landscape in Morocco, including factors such as GDP growth, inflation rates, and foreign direct investment, plays a significant role in shaping the banking market. As the economy continues to grow and diversify, there is an increased demand for banking services to support various sectors such as tourism, agriculture, and manufacturing. Additionally, regulatory reforms and initiatives aimed at enhancing the stability and efficiency of the financial system contribute to the overall attractiveness of the banking sector in Morocco.

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.