Traditional Banks - Spain

Spain

In Spain, the net interest income in the Traditional Banks market market is projected to reach US$27.43bn in 2024.
Traditional Commercial Banking dominates the market with a projected market volume of US$23.31bn in 2024.
The net interest income is expected to show an annual growth rate (CAGR 2024-2029) of -3.20%, resulting in a market volume of US$23.31bn by 2029.
In global comparison, China is expected to generate the highest net interest income, reaching US$3,869.0bn in 2024.
Traditional banks in Spain are facing increasing competition from digital banks, forcing them to invest in technology and improve their online banking services to retain customers.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Banks market in Spain has been experiencing interesting developments and trends in recent years.

Customer preferences: Customers in Spain are showing a growing preference for traditional banks due to a sense of trust and reliability associated with these institutions. Many customers value the personalized service and face-to-face interactions that traditional banks offer, especially in a culture that values relationships and human connection in business dealings.

Trends in the market: One of the notable trends in the Traditional Banks market in Spain is the increasing focus on digital transformation. Traditional banks are investing heavily in digital technologies to enhance customer experience, streamline operations, and remain competitive in the evolving financial landscape. This trend is driven by changing customer expectations for convenient and seamless banking services.

Local special circumstances: Spain has a unique banking landscape with a mix of traditional banks, savings banks, and cooperative banks. This diversity provides customers with a range of options to choose from based on their preferences and needs. Traditional banks in Spain have a strong presence in both urban and rural areas, catering to a wide customer base across the country.

Underlying macroeconomic factors: The macroeconomic environment in Spain plays a significant role in shaping the Traditional Banks market. Factors such as interest rates, economic growth, and regulatory policies influence the profitability and growth prospects of traditional banks. In recent years, the low-interest-rate environment in Spain has posed challenges for traditional banks in terms of maintaining margins and profitability, leading to a greater focus on cost efficiency and digital innovation.

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.