Traditional Banks - Bhutan

Bhutan

In the year 2024, it is projected that the net interest income in the Traditional Banks market market of Bhutan will reach a significant amount of US$354.00m.
Within this market, Traditional Retail Banking holds the dominant position, with a projected market volume of US$195.40m in the same year.
Looking ahead, the net interest income is expected to exhibit an annual growth rate of 5.68% from 2024 to 2029, as per the compound annual growth rate (CAGR) calculation.
This growth will result in a market volume of US$466.60m by the year 2029.
In a global context, it is worth noting that China is set to generate the highest net interest income, reaching a substantial amount of US$3,869.0bn in 2024.
Traditional banks in Bhutan are witnessing a decline in customer footfall due to the rising popularity of digital banking solutions.

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

The Traditional Banks market in Bhutan is experiencing significant growth and development, influenced by various factors unique to the region.

Customer preferences: Customers in Bhutan have traditionally valued personalized and face-to-face interactions when it comes to banking services. They prefer building relationships with bank representatives and having a sense of trust and familiarity. This preference for personalized service has led traditional banks to focus on enhancing customer experience through tailored solutions and dedicated relationship managers.

Trends in the market: One notable trend in the Traditional Banks market in Bhutan is the increasing adoption of digital banking services. While customers still value in-person interactions, there is a growing demand for online banking, mobile apps, and digital payment solutions. Traditional banks are investing in technology to meet this demand and provide customers with convenient and secure digital banking options. This trend is reshaping the way banks in Bhutan operate and interact with their customers.

Local special circumstances: Bhutan's unique geographical location and cultural heritage play a significant role in shaping the Traditional Banks market. The country's focus on Gross National Happiness and sustainable development influences banking practices, with an emphasis on social responsibility and ethical banking. Traditional banks in Bhutan often align their services with the values and priorities of the local community, supporting initiatives that contribute to the well-being of society.

Underlying macroeconomic factors: The stable economic growth and increasing financial literacy in Bhutan are driving the expansion of the Traditional Banks market. As the economy develops and more people gain access to financial services, there is a growing demand for a wider range of banking products and solutions. Traditional banks play a crucial role in supporting this economic growth by providing essential financial services to individuals, businesses, and government entities. The overall macroeconomic stability and government initiatives to promote financial inclusion further contribute to the positive outlook for the Traditional Banks market in Bhutan.

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.