Traditional Banks - Bangladesh

Bangladesh

In 2024, the projected Net Interest Income in the Traditional Banks market market of Bangladesh is estimated to reach US$36.83bn.
Traditional Commercial Banking is the dominant player in this market segment, with a projected market volume of US$36.02bn in 2024.
Looking ahead, the Net Interest Income is expected to experience a compound annual growth rate (CAGR 2024-2029) of 5.54%, leading to a market volume of US$48.22bn by 2029.
In a global context, China is anticipated to generate the highest Net Interest Income of US$3,869.0bn in 2024.
Traditional banks in Bangladesh are facing increasing competition from digital banking solutions, prompting them to invest in technology and innovation to stay relevant in the market.

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

Bangladesh's Traditional Banks market has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Bangladesh are increasingly turning to Traditional Banks due to a growing trust in established financial institutions. The preference for face-to-face interactions and personalized services offered by Traditional Banks is also driving customers towards this sector.

Trends in the market: One of the key trends in the Traditional Banks market in Bangladesh is the expansion of branch networks to rural areas. Traditional Banks are focusing on financial inclusion and reaching the unbanked population in remote regions. Additionally, there is a trend towards digital transformation within Traditional Banks, with many institutions investing in online banking platforms and mobile apps to enhance customer experience.

Local special circumstances: In Bangladesh, the Traditional Banks market is influenced by the country's unique demographic and economic factors. The large population, coupled with increasing urbanization, presents a significant market opportunity for Traditional Banks to expand their customer base. Moreover, the regulatory environment in Bangladesh plays a crucial role in shaping the operations and growth strategies of Traditional Banks in the country.

Underlying macroeconomic factors: The growth of the Traditional Banks market in Bangladesh is also supported by favorable macroeconomic conditions. The stable economic growth, rising disposable incomes, and government initiatives to promote financial literacy are contributing to the overall development of the banking sector. Additionally, the low penetration of banking services in rural areas presents a growth opportunity for Traditional Banks to expand their reach and increase market share.

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.