Traditional Banks - Angola

Angola

In Angola, the net interest income in the Traditional Banks market market is expected to reach US$1.46bn in 2024.
Traditional Retail Banking dominates this market segment, with a projected market volume of US$1.05bn in 2024.
The net interest income is forecasted to experience an annual growth rate of 3.33% (CAGR 2024-2029), resulting in a market volume of US$1.72bn by 2029.
When compared globally, it is noteworthy that China is expected to generate the highest net interest income, amounting to US$3,869.0bn in 2024.
Traditional banks in Angola are facing increased competition from mobile banking services, forcing them to innovate and adapt to changing consumer preferences.

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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Analyst Opinion

In recent years, the Traditional Banks market in Angola has been experiencing significant developments and trends that are shaping the industry landscape.

Customer preferences: Customers in Angola are increasingly seeking personalized and convenient banking services, driving traditional banks to enhance their digital offerings and customer experience. The demand for efficient payment solutions and access to credit facilities is also on the rise, prompting banks to innovate and expand their product portfolios to meet these evolving needs.

Trends in the market: One prominent trend in the Traditional Banks market in Angola is the adoption of digital banking solutions. Traditional banks are investing in online and mobile banking platforms to cater to tech-savvy customers and improve operational efficiency. Moreover, there is a growing trend towards financial inclusion, with banks expanding their reach to underserved areas through agency banking and mobile money services.

Local special circumstances: Angola's banking sector is influenced by the country's oil-dependent economy, which has faced challenges in recent years due to fluctuating oil prices and economic instability. As a result, traditional banks in Angola are navigating a challenging operating environment, marked by currency depreciation and inflation. This has compelled banks to adopt prudent risk management practices and diversify their revenue streams to mitigate the impact of economic uncertainties.

Underlying macroeconomic factors: The Traditional Banks market in Angola is also influenced by broader macroeconomic factors, such as regulatory changes and government policies. The central bank plays a crucial role in overseeing the banking sector and implementing regulations to ensure stability and transparency. Additionally, Angola's efforts to diversify its economy away from oil dependence are creating opportunities for banks to finance key sectors such as agriculture, manufacturing, and infrastructure development.

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.