Banking - Serbia

Serbia

In Serbia, the Net Interest Income in the Banking market is projected to reach US$3.65bn by 2024.
Traditional Banks dominate the market with a projected market volume of US$3.14bn in 2024.
The Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of 1.85%, resulting in a market volume of US$4.00bn by 2029.
In global comparison, the highest Net Interest Income will be generated China, amounting to US$4,332.0bn in 2024.
Serbia's banking market is witnessing a surge in digital banking services, with increased adoption of online 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

The Banking market in Serbia has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in Serbia are increasingly seeking digital banking solutions, leading to a rise in online and mobile banking services. Convenience, accessibility, and efficiency are driving this shift in customer preferences, aligning with global trends towards digitalization in the banking sector.

Trends in the market: One prominent trend in the Serbian banking market is the consolidation of banks, with larger institutions acquiring smaller banks to gain market share and expand their service offerings. This trend is partly driven by the need for economies of scale and to stay competitive in a rapidly evolving market. Additionally, banks in Serbia are focusing on enhancing their customer experience through personalized services, innovative products, and improved digital platforms.

Local special circumstances: Serbia's banking market is influenced by unique local circumstances, such as regulatory changes aimed at increasing transparency and stability in the financial sector. The country's ongoing efforts to align with European Union standards also impact the banking industry, leading to changes in operating procedures and service offerings. Moreover, the geopolitical environment and economic conditions in the region play a role in shaping the banking market in Serbia.

Underlying macroeconomic factors: Macroeconomic factors, such as GDP growth, inflation rates, and foreign direct investment, significantly impact the banking sector in Serbia. Economic stability and growth contribute to increased lending activities, investment opportunities, and overall market confidence. However, external factors like global economic trends and geopolitical risks can also influence the performance and outlook of the banking market in Serbia.

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.