Traditional Banks - Serbia

Serbia

In 2024, the Net Interest Income in the market segment of Traditional Banks market in Serbia is forecasted to reach US$3.14bn.
Traditional Retail Banking dominates this market with a projected market volume of US$1.79bn in 2024.
The Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.30%, resulting in a market volume of US$3.35bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income of US$3,869.0bn in 2024.
Serbia's traditional banking sector is experiencing a slow digital transformation, with customers still relying heavily on physical branches for their banking needs.

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

Traditional Banks in Serbia are experiencing a period of growth and development.

Customer preferences: Customers in Serbia are increasingly turning to traditional banks for their financial needs due to the stability and reliability they offer. With a long history of providing financial services, traditional banks are seen as trustworthy institutions by the Serbian population. Additionally, many customers prefer the personalized service and face-to-face interactions that traditional banks can provide.

Trends in the market: One of the key trends in the Traditional Banks market in Serbia is the increasing digitization of services. Traditional banks are investing in online and mobile banking platforms to cater to the growing demand for digital banking services. This trend is driven by changing customer preferences and the need to stay competitive in the market. Moreover, traditional banks are also expanding their product offerings to include a wider range of financial services such as wealth management and insurance.

Local special circumstances: In Serbia, the Traditional Banks market is influenced by a relatively stable regulatory environment. The government has implemented reforms to strengthen the banking sector and improve transparency, which has boosted confidence in traditional banks. Additionally, the presence of foreign banks in the market has increased competition and innovation, leading traditional banks to enhance their services to attract and retain customers.

Underlying macroeconomic factors: The development of the Traditional Banks market in Serbia is also supported by favorable macroeconomic conditions. The country has experienced steady economic growth in recent years, which has increased disposable income and overall demand for banking services. Furthermore, Serbia's integration into the European Union has opened up new opportunities for traditional banks to expand their operations and access a larger 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.