Traditional Banks - Belgium

Belgium

In 2024, the Net Interest Income in the Traditional Banks market market of Belgium is projected to reach US$16.00bn.
Traditional Commercial Banking dominates the market with a projected market volume of US$13.96bn in the same year.
Looking ahead, the Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of 0.24%, resulting in a market volume of US$16.19bn by 2029.
When comparing globally, it is worth noting that China is expected to generate the highest amount of Net Interest Income with US$3,869.0bn in 2024.
Traditional banks in Belgium are facing increased competition from digital banking platforms, forcing them to invest in technology and improve their online 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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

Belgium, known for its waffles and chocolates, also has a well-established Traditional Banks market that is experiencing interesting developments.

Customer preferences: Customers in Belgium tend to value personalized service and strong relationships with their banks. They prefer a wide range of traditional banking services, including savings accounts, loans, and mortgages. Moreover, there is a growing demand for digital banking solutions among younger generations, pushing traditional banks to enhance their online and mobile banking offerings.

Trends in the market: One noticeable trend in the Traditional Banks market in Belgium is the increasing competition from digital banks and fintech companies. These new players are challenging traditional banks by offering innovative and convenient financial services. To stay competitive, traditional banks are investing in digital transformation, focusing on improving their digital platforms and customer experience. Another trend is the shift towards sustainable banking, with customers showing more interest in environmentally friendly and socially responsible banking options.

Local special circumstances: Belgium's banking sector is unique due to its high concentration of bank branches compared to other European countries. This dense network of physical branches has traditionally been a key aspect of the banking landscape in Belgium, providing customers with easy access to in-person banking services. However, the rise of digital banking is gradually changing this dynamic, prompting traditional banks to reconsider their branch strategies and optimize their physical and digital presence to meet evolving customer needs.

Underlying macroeconomic factors: The Traditional Banks market in Belgium is influenced by various macroeconomic factors, including interest rates, economic growth, and regulatory environment. Low-interest rates set by the European Central Bank have put pressure on banks' profitability, leading them to explore new revenue streams and cost-cutting measures. Economic conditions, such as GDP growth and unemployment rates, also impact the demand for banking services. Additionally, regulatory changes aimed at enhancing consumer protection and promoting financial stability play a significant role in shaping the operating environment for traditional banks in Belgium.

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.