Traditional Banks - Benelux

Benelux

In 2024, it is projected that the Net Interest Income in the Traditional Banks market market in Benelux will reach US$56.06bn.
Traditional Commercial Banking dominates this market segment in Benelux, with a projected market volume of US$49.68bn in 2024.
Looking ahead, Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of 1.16%, leading to a market volume of US$59.40bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, reaching US$3,869.0bn in 2024.
Traditional banks in the Benelux region are facing increased competition from digital banks, compelling them to enhance their digital offerings to attract and retain customers.

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 Benelux has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in the Benelux region have shown a growing preference for traditional banks due to a sense of security and stability they offer. Many customers value the long-standing reputation and reliability of traditional banks, especially in times of economic uncertainty. Additionally, traditional banks in Benelux often provide a wide range of financial products and services, catering to diverse customer needs.

Trends in the market: One prominent trend in the Traditional Banks market in Benelux is the increasing focus on digital transformation. Traditional banks are investing in digital technologies to enhance customer experience, improve operational efficiency, and stay competitive in the market. Mobile banking, online account management, and digital payment solutions are becoming standard offerings from traditional banks in the region. Moreover, there is a growing trend towards sustainable and socially responsible banking practices among traditional banks in Benelux, aligning with the values of environmentally conscious customers.

Local special circumstances: In Benelux, the Traditional Banks market is influenced by the region's unique regulatory environment and market structure. The presence of multiple regulatory bodies and compliance requirements can impact the operations and strategies of traditional banks in the region. Furthermore, the high level of competition from both traditional banks and innovative fintech companies has led traditional banks in Benelux to adapt and differentiate their services to retain and attract customers.

Underlying macroeconomic factors: The economic stability and growth in the Benelux region have provided a favorable environment for the Traditional Banks market to thrive. Low interest rates set by the European Central Bank have encouraged borrowing and investment activities, benefiting traditional banks. Additionally, the increasing integration of the Benelux countries in the European Union's single market has facilitated cross-border banking services and opportunities for traditional banks to expand their presence regionally.

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.