Traditional Banks - Finland

Finland

In 2024, it is projected that the net interest income in the Traditional Banks market market in Finland will reach US$10.14bn.
Traditional Commercial Banking dominates this market segment with a projected market volume of US$6.94bn in 2024.
Looking ahead, the net interest income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.45%, resulting in a market volume of US$10.37bn by 2029.
When compared globally, China is expected to generate the highest net interest income, amounting to US$3,869.0bn in 2024.
Despite the rise of digital banking, traditional banks in Finland continue to thrive due to the country's strong preference for in-person 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.

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 Finland has been experiencing notable developments in recent years.

Customer preferences: Customers in Finland are increasingly valuing personalized services and digital banking solutions offered by traditional banks. The convenience of online and mobile banking has become a key factor for many customers when choosing a bank. Additionally, there is a growing demand for sustainable banking practices and ethical investments among Finnish consumers.

Trends in the market: One of the prominent trends in the Traditional Banks market in Finland is the consolidation of smaller banks to improve competitiveness and efficiency. This trend is driven by the need to invest in digital infrastructure and innovative services to meet the evolving needs of customers. Moreover, traditional banks in Finland are focusing on enhancing cybersecurity measures to protect customer data and prevent cyber threats.

Local special circumstances: Finland's banking sector is characterized by a high level of digitalization and technological advancement. The country has a well-established infrastructure for electronic payments and a strong regulatory framework that promotes financial stability and consumer protection. Moreover, Finnish banks have been actively investing in sustainable finance initiatives to align with the country's commitment to environmental responsibility.

Underlying macroeconomic factors: The development of the Traditional Banks market in Finland is also influenced by macroeconomic factors such as economic growth, interest rates, and regulatory changes. The low interest rate environment in Europe has put pressure on banks' profitability, leading them to explore new revenue streams and cost-cutting measures. Additionally, regulatory reforms aimed at increasing transparency and competition in the banking sector have shaped the strategic direction of traditional banks in Finland.

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.