Traditional Banks - Bosnia and Herzegovina

Bosnia and Herzegovina

In Bosnia and Herzegovina, the Traditional Banks market market is expected to witness a significant growth in Net Interest Income.
By 2024, it is projected to reach US$480.30m.
The market is predominantly dominated by Traditional Retail Banking, which is estimated to have a market volume of US$330.70m in 2024.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 7.25%, leading to a market volume of US$681.60m by 2029.
In a global context, China is expected to generate the highest Net Interest Income, with an estimated amount of US$3,869.0bn in 2024.
Despite the rise of digital banking, traditional banks in Bosnia and Herzegovina continue to play a crucial role in the country's financial sector.

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

Traditional Banks market in Bosnia and Herzegovina is experiencing steady growth and development, driven by various factors influencing customer preferences and market trends.

Customer preferences: Customers in Bosnia and Herzegovina prefer traditional banks for their reliability, established reputation, and comprehensive range of services. They value personalized customer service and face-to-face interactions when managing their finances, which traditional banks excel in providing. Additionally, many customers still prefer the familiarity and security offered by brick-and-mortar bank branches.

Trends in the market: One notable trend in the Traditional Banks market in Bosnia and Herzegovina is the increasing adoption of digital banking services. Traditional banks are investing in online and mobile banking platforms to cater to the changing preferences of tech-savvy customers. This trend is driven by the growing demand for convenience, speed, and accessibility in banking services. Moreover, traditional banks are also focusing on enhancing their cybersecurity measures to ensure the safety of digital transactions.

Local special circumstances: In Bosnia and Herzegovina, the Traditional Banks market is influenced by the country's unique economic and regulatory environment. The market is characterized by a mix of domestic and foreign banks, each navigating the challenges of operating in a transitioning economy. Political stability, regulatory changes, and currency fluctuations can impact the performance and strategies of traditional banks in the country. Additionally, the market is also influenced by cultural factors and customer preferences specific to the region.

Underlying macroeconomic factors: The development of the Traditional Banks market in Bosnia and Herzegovina is closely tied to macroeconomic factors such as GDP growth, inflation rates, and interest rates. Economic stability and growth contribute to increased consumer confidence and investment opportunities, which can positively impact the banking sector. Furthermore, regulatory reforms and government policies play a significant role in shaping the operating environment for traditional banks in the country. Overall, the market is poised for further growth and innovation as traditional banks adapt to the evolving needs of customers and the changing landscape of the financial industry.

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.