Banking - Norway

Norway

In 2024, the projected Net Interest Income in the Banking market in Norway is estimated to reach US$10.79bn.
Traditional Banks are expected to dominate the market, with a projected market volume of US$7.01bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 8.57%, resulting in a market volume of US$16.28bn by 2029.
In comparison to other countries, China is projected to generate the highest Net Interest Income, with US$4,332.0bn in 2024.
Norway's banking market is witnessing a surge in digital banking services, as consumers increasingly prefer the convenience and accessibility of online and mobile banking platforms.

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

Norway's Banking market is experiencing a shift in customer preferences, trends, and local special circumstances, driven by underlying macroeconomic factors.

Customer preferences: Customers in Norway are increasingly leaning towards digital banking solutions, opting for convenience and efficiency in their financial transactions. The demand for online and mobile banking services is on the rise, with customers expecting seamless and user-friendly interfaces to manage their finances. This shift in preferences is in line with global trends towards digitalization in the banking sector, as customers seek more personalized and accessible banking experiences.

Trends in the market: One of the prominent trends in the Norwegian Banking market is the growing focus on sustainability and ethical banking practices. Customers are showing a preference for banks that demonstrate a commitment to environmental and social responsibility, influencing the development of green financial products and services. This trend aligns with Norway's strong emphasis on sustainability and green initiatives, shaping the offerings of banks in the country to meet the evolving needs of socially conscious consumers.

Local special circumstances: Norway's unique economic landscape, characterized by its strong welfare system and high standard of living, influences the Banking market in the country. The stability of the economy and the high level of trust in financial institutions contribute to a competitive banking sector focused on innovation and customer-centric solutions. Additionally, Norway's regulatory environment plays a crucial role in shaping the market dynamics, with stringent regulations ensuring the security and integrity of the financial system.

Underlying macroeconomic factors: The Banking market in Norway is also influenced by macroeconomic factors such as interest rates, inflation, and economic growth. The country's low-interest-rate environment has implications for banks' profitability and lending practices, as they navigate the challenges of generating revenue in a low-yield market. Moreover, economic indicators and market conditions impact consumer confidence and spending patterns, shaping the overall demand for banking products and services in Norway.

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.