Banking - Togo

Togo

In Togo, the Banking market is expected to witness a significant increase in Net Interest Income, with projections indicating a rise to US$672.90m in 2024.
It is worth noting that Traditional Banks hold a dominant position in this market segment, with a projected market volume of US$669.80m in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 4.60%, leading to a market volume of US$842.60m by 2029.
When considering the global landscape, it is noteworthy that China is expected to generate the highest Net Interest Income, reaching US$4,332.0bn in 2024.
The banking sector in Togo is experiencing a surge in digital banking services, with a growing number of consumers adopting mobile banking and online payment 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 Togo has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Togo are increasingly seeking convenient and efficient banking services, leading to a rise in demand for digital banking solutions. This shift in preferences is driven by the convenience of conducting transactions online and the accessibility of mobile banking services.

Trends in the market: One notable trend in the Togolese banking market is the expansion of branch networks by both local and international banks. This trend aims to improve financial inclusion by reaching customers in rural areas and underserved communities. Additionally, there is a growing emphasis on offering tailored financial products and services to meet the diverse needs of customers in Togo.

Local special circumstances: In Togo, the banking sector is influenced by the government's efforts to promote financial stability and economic growth. Regulatory reforms and initiatives to enhance transparency and governance in the banking industry have created a more favorable environment for both banks and customers. Moreover, partnerships between banks and fintech companies are driving innovation and improving access to financial services for the unbanked population.

Underlying macroeconomic factors: The growth of the banking market in Togo is supported by favorable macroeconomic conditions, including stable economic growth and low inflation rates. The government's focus on infrastructure development and investment in key sectors such as agriculture and manufacturing is also contributing to the expansion of the banking sector. Additionally, Togo's strategic location as a gateway to the West African region presents opportunities for banks to capitalize on regional trade and investment flows.

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.