Traditional Banks - Hungary

Hungary

In Hungary, the projected Net Interest Income in the Traditional Banks market market is expected to reach US$9.83bn in 2024.
Traditional Commercial Banking dominates the market with a projected market volume of US$6.12bn in 2024.
The Net Interest Income is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 4.10%, resulting in a market volume of US$12.02bn by 2029.
Comparatively, China, the highest Net Interest Income is estimated to be generated, amounting to US$3,869.0bn in 2024.
Traditional banks in Hungary are struggling to compete with digital banks due to their slow adoption of technology.

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

Hungary's Traditional Banks market is experiencing a shift in customer preferences, which is driving various trends in the market.

Customer preferences: Customers in Hungary are increasingly seeking personalized and convenient banking services, leading traditional banks to enhance their digital offerings. This shift is influenced by global trends towards online and mobile banking, as customers prioritize accessibility and efficiency in their financial transactions.

Trends in the market: Traditional banks in Hungary are investing in digital transformation to meet the growing demand for online services. This includes the development of mobile banking apps, online account management tools, and digital payment solutions. Additionally, there is a trend towards offering more personalized financial advice and tailored products to meet the diverse needs of customers in Hungary.

Local special circumstances: One of the unique aspects of the Traditional Banks market in Hungary is the strong presence of domestic banks, which compete with international players. This competitive landscape drives innovation and customer-centric strategies among traditional banks in the country. Moreover, regulatory changes and government initiatives also play a significant role in shaping the market dynamics in Hungary.

Underlying macroeconomic factors: The macroeconomic environment in Hungary, including factors such as GDP growth, inflation rates, and interest rates, influences the Traditional Banks market. Economic stability and growth contribute to increased consumer confidence and spending, which in turn impact the demand for banking services. Moreover, regulatory reforms and policies aimed at promoting financial inclusion and innovation also shape the operating environment for traditional banks in Hungary.

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.