Traditional Banks - Algeria

Algeria

In Algeria, the projected Net Interest Income in the Traditional Banks market market is expected to reach US$6.83bn in 2024.
Traditional Retail Banking dominates the market with a projected market volume of US$4.36bn in 2024.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$8.93bn by 2029.
When comparing globally, it is worth noting that China will generate the highest Net Interest Income of US$3,869.0bn in 2024.
Traditional banks in Algeria are facing increasing competition from digital banks, forcing them to innovate and offer more convenient services to retain customers.

Key regions: Germany, United Kingdom, France, Japan, China

Definition:

The Traditional Retail and Commercial Banks 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. 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.
The traditional banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. These banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
In this market, banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. However, they also face challenges, such as increased competition and changing customer preferences, which are driving the need for continuous improvement and adaptation.
Overall, the traditional retail and commercial banking market provides a wide range of financial services to both individuals and businesses through established, trusted channels and continues to play a vital role in the financial landscape.

Structure:

The market consists of two segments:
- The Traditional Retail Banks market refers to financial services provided to individual consumers (e.g., personal loans, savings and checking accounts, credit cards, mortgages).
- The Traditional Commercial Banks market refers to financial services provided to businesses, including small and large enterprises (loans, lines of credit, other financial products specifically designed for businesses).

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, 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 and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Market

Region

Region comparison

Currency

Analyst Opinion

Algeria is witnessing interesting developments in its Traditional Banks market, with unique customer preferences and local special circumstances shaping the trends in the sector.

Customer preferences: Customers in Algeria are showing a growing inclination towards traditional banking services, such as savings accounts, personal loans, and mortgage facilities. This preference can be attributed to a cultural trust in established banking institutions and a desire for face-to-face interactions when managing their finances.

Trends in the market: One notable trend in the Algerian Traditional Banks market is the increasing adoption of digital banking services by customers. While traditional banking methods remain popular, there is a gradual shift towards online and mobile banking platforms. This trend is driven by the convenience and accessibility offered by digital banking, especially among the younger population.

Local special circumstances: The Algerian banking sector is heavily regulated by the government, with strict policies in place to ensure stability and security. This regulatory environment influences the operations and offerings of traditional banks in the country, shaping the competitive landscape. Additionally, the reliance on oil and gas revenues in Algeria plays a significant role in the banking sector, as fluctuations in commodity prices can impact the overall economy and banking activities.

Underlying macroeconomic factors: The macroeconomic landscape in Algeria, including factors such as GDP growth, inflation rates, and government policies, directly impacts the Traditional Banks market. Economic stability and growth are essential for the sector to thrive, as they influence consumer confidence, investment opportunities, and overall banking activities. Moreover, global economic trends and geopolitical events can also have ripple effects on the Algerian banking industry, highlighting the interconnected nature of the market with the broader international economy.

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.