Traditional Banks - Bahrain

Bahrain

In 2024, Bahrain's Traditional Banks market market is expected to reach a projected Net Interest Income of US$1.66bn.
Traditional Commercial Banking dominates this market segment with a projected market volume of US$1.53bn in 2024.
Looking ahead, the Net Interest Income is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.86%, resulting in a market volume of US$1.82bn by 2029.
When compared globally, China is projected to generate the highest Net Interest Income of US$3,869.0bn in 2024.
Bahrain's traditional banks are adapting to the rise of digital banking by enhancing their online platforms and offering innovative financial services.

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

The Traditional Banks market in Bahrain is experiencing a shift in customer preferences towards more digital and convenient banking solutions.

Customer preferences: Customers in Bahrain are increasingly seeking digital banking services that offer convenience, efficiency, and security. This shift in preferences is driven by the growing tech-savvy population and the ease of access to mobile devices. Traditional banks in Bahrain are adapting to this trend by investing in digital infrastructure and offering online banking services to cater to the changing needs of their customers.

Trends in the market: One prominent trend in the Traditional Banks market in Bahrain is the rise of digital banking platforms. Traditional banks are investing in technology to provide online and mobile banking services, allowing customers to perform transactions, check their accounts, and access banking services remotely. This trend is reshaping the banking landscape in Bahrain, with traditional banks competing with digital-only banks for market share.

Local special circumstances: Bahrain's strategic location as a financial hub in the Middle East has contributed to the development of its Traditional Banks market. The country's stable regulatory environment and supportive government policies have attracted international banks to establish a presence in Bahrain. This has led to increased competition in the market, prompting traditional banks to innovate and enhance their services to remain competitive.

Underlying macroeconomic factors: The growth of the Traditional Banks market in Bahrain is also influenced by macroeconomic factors such as economic stability, GDP growth, and government initiatives. The government's focus on diversifying the economy and promoting the financial services sector has created opportunities for traditional banks to expand their operations and customer base. Additionally, Bahrain's strong regulatory framework and commitment to financial transparency have instilled confidence in the banking sector, attracting both local and foreign investors.

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.