Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Argentina

Argentina

In Argentina, the Traditional Commercial Banking market market is expected to witness a significant growth in Net Interest Income, reaching a projected value of US$41.34bn by 2024.
Furthermore, it is anticipated that the Net Interest Income in this market will exhibit a compound annual growth rate (CAGR) of -9.48% from 2024 to 2029, resulting in a market volume of US$25.13bn by the end of the forecast period.
When compared globally, it is noteworthy that China is expected to generate the highest Net Interest Income in 2024, amounting to US$1,444.0bn.
Argentina's traditional commercial banking sector is experiencing a resurgence in customer trust and confidence due to increased regulatory oversight and improved financial stability.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

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 a dynamic economic environment, the Traditional Commercial Banking market in Argentina is experiencing notable shifts and developments.

Customer preferences: Argentinian customers in the Traditional Commercial Banking market are increasingly seeking digital solutions and convenient banking services. With the rise of tech-savvy consumers, there is a growing demand for online banking platforms, mobile banking apps, and digital payment options. This shift in customer preferences is driving traditional banks in Argentina to invest in digital infrastructure and enhance their technological capabilities to meet the evolving needs of their clients.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Argentina is the growing competition from digital banks and fintech companies. These new entrants are leveraging technology to offer innovative financial products and services, attracting a younger demographic of customers. As a result, traditional banks are facing pressure to adapt their business models and improve their digital offerings to remain competitive in the market. Additionally, there is a trend towards sustainable banking practices in Argentina, with customers showing a preference for banks that demonstrate social and environmental responsibility.

Local special circumstances: Argentina's economic landscape, characterized by volatility and inflation, has a significant impact on the Traditional Commercial Banking market. Fluctuations in the country's economy can influence interest rates, lending practices, and overall banking operations. As a result, banks in Argentina must navigate these unique challenges and implement strategies to mitigate risks while maintaining profitability. Moreover, regulatory changes and government policies can also shape the operating environment for traditional banks in the country, requiring them to stay agile and adaptable.

Underlying macroeconomic factors: The macroeconomic factors influencing the Traditional Commercial Banking market in Argentina include inflation rates, currency fluctuations, and economic growth prospects. These factors can impact the borrowing behavior of customers, the stability of the financial system, and the overall performance of banks in the country. In a volatile economic environment, traditional banks must carefully monitor these macroeconomic indicators and adjust their strategies accordingly to ensure long-term sustainability and growth.

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.