Traditional Banks - Burundi

Burundi

In 2024, it is projected that the net interest income in the Traditional Banks market market in Burundi will reach US$379.00m.
The market is predominantly dominated by Traditional Commercial Banking, which is expected to have a market volume of US$221.10m in the same year.
Looking ahead, the net interest income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.10%, resulting in a market volume of US$486.10m by 2029.
When compared globally, it is worth noting that China is expected to generate the highest net interest income, amounting to US$3,869.0bn in 2024.
This demonstrates the significant impact of the Chinese market in the global banking sector.
Traditional banks in Burundi are facing increased competition from digital banking platforms, forcing them to adapt and innovate to stay relevant in the market.

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

In Burundi, the Traditional Banks market is experiencing notable shifts and developments that are shaping the industry landscape.

Customer preferences: Customers in Burundi are increasingly seeking personalized banking services that cater to their specific needs and preferences. This trend is driving Traditional Banks to innovate and offer more tailored products and services to attract and retain customers in a competitive market.

Trends in the market: One key trend in the Traditional Banks market in Burundi is the growing adoption of digital banking solutions. Traditional Banks are investing in digital platforms to enhance customer experience, improve efficiency, and reach a wider customer base. This trend is driven by the increasing use of mobile phones and the internet in the country, presenting opportunities for banks to expand their services beyond physical branches.

Local special circumstances: Burundi's banking sector is influenced by the country's economic and political stability. The industry is closely monitored by regulatory authorities to ensure compliance and safeguard financial stability. Additionally, the limited access to banking services in rural areas presents a challenge for Traditional Banks to expand their reach and serve the unbanked population effectively.

Underlying macroeconomic factors: The Traditional Banks market in Burundi is influenced by macroeconomic factors such as inflation, exchange rates, and GDP growth. Economic stability and growth play a crucial role in the performance of banks, as they impact customers' purchasing power, investment decisions, and overall confidence in the banking sector. As the country continues to navigate economic challenges, Traditional Banks must adapt their strategies to remain resilient and 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.