Traditional Banks - Belarus

Belarus

In Belarus, the net interest income in the Traditional Banks market market is estimated to reach US$6.99bn in 2024.
Traditional Retail Banking dominates this market segment, with a projected market volume of US$5.16bn in the same year.
The net interest income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.87%, resulting in a market volume of US$11.71bn by 2029.
When compared globally, China is anticipated to generate the highest net interest income, amounting to US$3,869.0bn in 2024.
Traditional banks in Belarus are experiencing a decline in profitability due to increased competition from digital banking platforms.

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 Belarus is experiencing a shift in customer preferences, trends, and local special circumstances that are shaping its development.

Customer preferences: Customers in Belarus are increasingly seeking personalized and convenient banking services, driving traditional banks to enhance their digital offerings. The demand for online and mobile banking solutions is on the rise as customers look for easy access to their accounts and seamless transaction capabilities. Additionally, there is a growing interest in sustainable banking practices among customers, prompting traditional banks to incorporate environmental and social responsibility initiatives into their operations.

Trends in the market: One prominent trend in the Belarusian Traditional Banks market is the emphasis on innovation and technology. Traditional banks are investing in digital transformation to improve efficiency, enhance customer experience, and stay competitive in the evolving financial landscape. Moreover, there is a growing trend towards collaboration between traditional banks and fintech companies to leverage each other's strengths and offer innovative financial products and services to customers.

Local special circumstances: Belarus has a unique banking landscape characterized by a high level of state involvement in the financial sector. This special circumstance influences the operations and strategies of traditional banks in the country. Government regulations and policies play a significant role in shaping the banking industry, impacting areas such as lending practices, interest rates, and capital requirements. Traditional banks in Belarus must navigate these local special circumstances while striving to meet customer demands and achieve business objectives.

Underlying macroeconomic factors: The development of the Traditional Banks market in Belarus is also influenced by underlying macroeconomic factors such as economic growth, inflation rates, and exchange rate stability. A stable economic environment fosters confidence in the banking sector and encourages investment in financial products. Additionally, factors like geopolitical developments and global economic trends can have an impact on the performance and outlook of traditional banks in Belarus. Adapting to these macroeconomic conditions is essential for traditional banks to sustain growth and remain competitive in the market.

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.