Traditional Banks - Guinea

Guinea

In Guinea, the Traditional Banks market market is expected to witness a significant growth in the coming years.
The projected net interest income for the year 2024 is estimated to be US$3.46bn.
Traditional Commercial Banking is the dominant player in this market segment, with a projected market volume of US$2.54bn in 2024.
Looking ahead, the net interest income is anticipated to exhibit a compound annual growth rate (CAGR) of 5.11% between 2024 and 2029.
This growth trajectory is expected to result in a market volume of US$4.44bn by 2029.
In terms of global comparison, it is worth noting that China will generate the highest net interest income, amounting to US$3,869.0bn in 2024.
This showcases the significant role played by the Chinese market in the banking sector.
Traditional banks in Guinea are facing increased competition from mobile banking services, as more people in the country are using their smartphones for financial transactions.

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

The Traditional Banks market in Guinea has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Guinea have shown a growing preference for traditional banking services offered by brick-and-mortar banks. This preference can be attributed to the trust and reliability associated with established banks, as well as the personalized service and face-to-face interactions they offer.

Trends in the market: One trend in the Traditional Banks market in Guinea is the expansion of branch networks to reach more customers in both urban and rural areas. This trend is driven by the increasing demand for banking services across the country, as well as the efforts of banks to enhance financial inclusion.

Local special circumstances: Guinea's Traditional Banks market is also influenced by local special circumstances such as the prevalence of cash transactions in the economy. Despite the increasing digitization of banking services globally, many Guineans still prefer cash transactions, which impacts the operations and strategies of traditional banks in the country.

Underlying macroeconomic factors: The development of the Traditional Banks market in Guinea is supported by various macroeconomic factors, including the country's stable economic growth, increasing urbanization, and efforts to strengthen the regulatory framework for the banking sector. These factors create a favorable environment for the growth and expansion of traditional banks in Guinea.

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.