Traditional Banks - Armenia

Armenia

In Armenia, the net interest income in the Traditional Banks market market is projected to reach US$197.60m in 2024.
Traditional Commercial Banking dominates the market with a projected market volume of US$109.00m in 2024.
The net interest income is expected to show an annual growth rate (CAGR 2024-2029) of 11.06%, resulting in a market volume of US$333.80m by 2029.
In global comparison, China is expected to generate the highest net interest income of US$3,869.0bn in 2024.
Traditional Banks in the Armenian banking market are facing increased competition from digital banks and fintech startups.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

Armenia, a country known for its rich cultural heritage and stunning landscapes, is also experiencing interesting developments in its Traditional Banks market.

Customer preferences: Armenian customers have traditionally favored in-person banking services, valuing the personal touch and face-to-face interactions with bank representatives. However, there is a gradual shift towards digital banking channels as customers seek more convenient and efficient ways to manage their finances.

Trends in the market: One notable trend in the Traditional Banks market in Armenia is the increasing adoption of digital banking solutions. Traditional banks are investing in technology to offer online and mobile banking services, catering to the changing preferences of customers. This shift towards digitalization is not only driven by customer demand for convenience but also by the need for cost efficiency and competitiveness in the market.

Local special circumstances: Armenia's banking sector has been undergoing reforms to enhance transparency, stability, and efficiency. The Central Bank of Armenia has been implementing measures to strengthen the regulatory framework and improve the overall governance of the banking sector. These efforts are aimed at building trust and confidence in the financial system, which is crucial for the sustainable growth of the Traditional Banks market.

Underlying macroeconomic factors: The development of the Traditional Banks market in Armenia is also influenced by macroeconomic factors such as economic growth, inflation, and interest rates. A stable economic environment, favorable interest rate policies, and low inflation rates can positively impact the performance of traditional banks by encouraging borrowing, investment, and overall financial activity. On the other hand, economic uncertainties or fluctuations can pose challenges for the banking sector in terms of credit quality, liquidity, and profitability.

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.