Banking - Sierra Leone

Sierra Leone

In Sierra Leone, the projected Net Interest Income in the Banking market for the year 2024 is expected to reach US$719.50m.
Traditional Banks dominate this market segment, with a projected market volume of US$718.20m for the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.37%, resulting in a market volume of US$934.80m by 2029.
When comparing in Sierra Leone to the global market, it is worth noting that China is expected to generate the highest amount of Net Interest Income in 2024, with a projected value of US$4,332.0bn.
Sierra Leone's banking market has seen a surge in digital banking services, with mobile banking becoming increasingly popular among the population.

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 Sierra Leone has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Sierra Leone are increasingly leaning towards digital banking solutions due to the convenience and efficiency they offer. Mobile banking services have gained popularity among the tech-savvy population, driving the demand for innovative digital banking products.

Trends in the market: One notable trend in the Sierra Leonean banking market is the increasing competition among local and international banks. This competition has led to banks introducing new and improved services to attract and retain customers. Additionally, there is a growing trend towards financial inclusion, with banks expanding their reach to underserved areas in the country.

Local special circumstances: Sierra Leone's banking market is unique due to the country's history of civil conflict and economic challenges. Despite these obstacles, the banking sector has shown resilience and adaptability. Local banks are focusing on building trust and credibility among customers to drive financial inclusion and economic growth.

Underlying macroeconomic factors: The growth of the banking market in Sierra Leone can be attributed to various macroeconomic factors, including stable economic growth, government initiatives to promote financial inclusion, and a young and growing population. Additionally, the increasing adoption of digital technology and mobile phones has created opportunities for banks to reach a wider customer base and offer innovative banking solutions.

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.