Traditional Banks - Malta

Malta

In 2024, the projected Net Interest Income in Malta's Traditional Banks market market is expected to reach US$260.20m.
Among the market segments, Traditional Retail Banking dominates with a projected market volume of US$184.80m in 2024.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -1.20%, which would result in a market volume of US$245.00m by 2029.
When compared globally, China is projected to generate the highest Net Interest Income, reaching US$3,869.0bn in 2024.
The Traditional Banks market market in Malta showcases these figures and trends.
Malta's traditional banks are experiencing a decline in market share due to the rise of digital banking solutions.

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

Over the past few years, the Traditional Banks market in Malta has shown interesting developments that reflect the changing landscape of the financial sector in the country.

Customer preferences: Customers in Malta have shown a growing preference for traditional banks due to the stability and reliability they offer. Many Maltese customers still value the in-person banking experience and personalized service that traditional banks provide. Additionally, the trust factor associated with long-established banks plays a significant role in customer preferences in Malta.

Trends in the market: One noticeable trend in the Traditional Banks market in Malta is the increasing adoption of digital banking services by traditional banks. To keep up with changing customer preferences and technological advancements, traditional banks in Malta have been investing in digital transformation initiatives. This trend is driven by the need to provide customers with convenient and efficient banking solutions while also streamlining internal processes.

Local special circumstances: The size of the Maltese market and the strong regulatory environment have also influenced the development of the Traditional Banks market in Malta. Being a small island nation, the market is relatively concentrated, with a few key players dominating the industry. This has led to intense competition among traditional banks, prompting them to innovate and differentiate their offerings to attract and retain customers.

Underlying macroeconomic factors: The macroeconomic environment in Malta, including factors such as economic growth, employment rates, and interest rates, plays a crucial role in shaping the Traditional Banks market. As the Maltese economy continues to grow steadily, traditional banks are presented with opportunities to expand their customer base and introduce new products and services. Moreover, the low-interest-rate environment has encouraged borrowing and investment activities, further driving the growth of traditional banks in Malta.

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.