Traditional Banks - Croatia

Croatia

In 2024, the projected Net Interest Income in the Traditional Banks market market in Croatia is expected to reach US$1.85bn.
Traditional Retail Banking dominates the market with a projected market volume of US$1.00bn in 2024.
The Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of -1.33%, resulting in a market volume of US$1.73bn by 2029.
In global comparison, in China is projected to generate the highest Net Interest Income, amounting to US$3,869.0bn in 2024.
Traditional banks in Croatia are facing increased competition from digital banking platforms, forcing them to adapt and innovate in order 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.

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Analyst Opinion

Amidst the picturesque landscapes and rich cultural heritage of Croatia, the Traditional Banks market is experiencing notable developments and trends.

Customer preferences: Customers in Croatia are showing a growing inclination towards traditional banking services offered by established banks. This preference can be attributed to a strong sense of trust and reliability associated with traditional banks, as well as a desire for personalized services and in-person interactions.

Trends in the market: One prominent trend in the Traditional Banks market in Croatia is the increasing adoption of digital banking services. While traditional banks continue to hold a significant market share, they are also investing in digital infrastructure to meet the evolving needs of tech-savvy customers. This trend reflects a balance between traditional values and modern convenience in the banking sector.

Local special circumstances: Croatia's unique geographical position as a bridge between Central Europe and the Adriatic Sea has influenced its banking sector. The country's tourism industry plays a crucial role in shaping the Traditional Banks market, with banks offering specialized services to cater to the needs of tourists and foreign investors. Additionally, Croatia's membership in the European Union has led to increased integration with the European banking system, impacting the operations and strategies of traditional banks in the country.

Underlying macroeconomic factors: The macroeconomic landscape in Croatia, including factors such as GDP growth, inflation rates, and unemployment levels, has a significant impact on the Traditional Banks market. Economic stability and growth contribute to increased consumer confidence and investment opportunities, which in turn drive the demand for banking services. As Croatia continues to navigate its path towards economic development and integration with the European Union, traditional banks play a vital role in supporting the country's financial infrastructure and fostering economic growth.

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.