Traditional Banks - Ireland

Ireland

In 2024, the projected Net Interest Income in the Traditional Banks market market in Ireland is expected to reach US$2.37bn.
Traditional Commercial Banking is the dominant player in this market segment, with a projected market volume of US$1.66bn in the same year.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate of -6.65% (CAGR 2024-2029), resulting in a market volume of US$1.68bn by 2029.
When comparing globally, it is worth noting that in China is expected to generate the highest Net Interest Income, reaching US$3,869.0bn in 2024.
Despite the rise of digital banking, traditional banks in Ireland still hold a strong position due to the country's cultural preference for personal relationships and face-to-face interactions.

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 evolving landscape of the financial sector in Ireland, the Traditional Banks market has been experiencing notable shifts and developments.

Customer preferences: Customers in Ireland are increasingly seeking more personalized and convenient banking services, prompting traditional banks to enhance their digital offerings. This shift in preference towards digital banking solutions has led to a surge in online and mobile banking usage among customers, driving traditional banks to invest in technology to meet these changing demands.

Trends in the market: One prominent trend in the Traditional Banks market in Ireland is the growing competition from fintech companies and digital banks. These new entrants are challenging traditional banks by offering innovative and user-friendly financial solutions, forcing traditional banks to adapt and innovate to stay competitive. Additionally, there is a trend towards sustainable banking practices, with customers showing a preference for banks that prioritize environmental and social responsibility in their operations.

Local special circumstances: Ireland's strong economic growth and stable political environment have contributed to a favorable business climate for traditional banks. The country's status as a global financial hub, particularly in the realm of fintech, has also influenced the Traditional Banks market. Moreover, Ireland's young and tech-savvy population has been quick to adopt digital banking services, further driving the market trends in the sector.

Underlying macroeconomic factors: The macroeconomic factors shaping the Traditional Banks market in Ireland include the impact of Brexit on the financial services industry and the broader economy. The uncertainty surrounding Brexit has led to some challenges for traditional banks in Ireland, particularly in terms of market volatility and regulatory changes. Additionally, the low-interest-rate environment and changing regulatory landscape are factors that traditional banks in Ireland must navigate as they strive to maintain profitability and growth in the market.

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.