Traditional Banks - Egypt

Egypt

In 2024, it is projected that the net interest income in the Traditional Banks market market in Egypt will reach US$35.84bn.
Traditional Retail Banking is the dominant player in this market segment, with a projected market volume of US$26.32bn in 2024.
Looking ahead, the net interest income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.82%, leading to a market volume of US$45.36bn by 2029.
When compared globally, in China is expected to generate the highest net interest income, amounting to US$3,869.0bn in 2024.
The traditional banking sector in Egypt is experiencing a decline in market share due to the rise of digital banking services.

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

Egypt's Traditional Banks market is witnessing significant developments and trends that are shaping the industry in the country.

Customer preferences: Customers in Egypt are increasingly seeking personalized and convenient banking services. They are looking for traditional banks that offer a wide range of digital banking solutions, such as online banking platforms and mobile applications, to cater to their banking needs. Additionally, customers are placing a high value on the security and reliability of traditional banks, which is driving their preference for established institutions with a long-standing reputation in the market.

Trends in the market: One notable trend in the Traditional Banks market in Egypt is the growing adoption of fintech solutions by traditional banks. These banks are increasingly partnering with fintech companies to enhance their service offerings and improve the overall customer experience. Moreover, traditional banks in Egypt are expanding their product portfolios to include innovative financial products and services to stay competitive in the market. Another trend is the focus on financial inclusion, with traditional banks in Egypt working to reach unbanked populations and provide them with access to banking services.

Local special circumstances: In Egypt, the regulatory environment plays a significant role in shaping the Traditional Banks market. The Central Bank of Egypt has been implementing reforms to strengthen the banking sector and enhance financial stability in the country. These regulations are influencing the strategies and operations of traditional banks in Egypt, pushing them to comply with stringent requirements and adopt best practices in risk management and corporate governance.

Underlying macroeconomic factors: The macroeconomic landscape in Egypt is also influencing the development of the Traditional Banks market. Factors such as economic growth, inflation rates, and foreign investment are impacting the overall performance of traditional banks in the country. Moreover, demographic trends, such as a young and tech-savvy population, are driving the demand for digital banking solutions and shaping the future direction of the Traditional Banks market in Egypt.

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.