Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Belgium

Belgium

In Belgium, the Traditional Commercial Banking market market is expected to witness a significant increase in Net Interest Income, reaching an estimated value of US$13.96bn by the year 2024.
Looking ahead, this sector is projected to experience a steady growth rate of 0.96% annually from 2024 to 2029, leading to a market volume of approximately US$14.64bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income in 2024, amounting to a staggering US$1,444.0bn.
Belgium's traditional commercial banking market is experiencing a shift towards digitalization and online banking services.

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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Commercial Banking market in Belgium is experiencing notable trends and developments that are shaping the industry landscape.

Customer preferences: Customers in Belgium are increasingly seeking personalized banking services that cater to their specific needs and preferences. This trend is driving traditional commercial banks in the country to focus on enhancing customer experience through digitalization and innovation. Additionally, there is a growing demand for sustainable banking practices among customers, leading banks to incorporate environmental and social considerations into their operations.

Trends in the market: One significant trend in the Traditional Commercial Banking market in Belgium is the rise of digital banking solutions. With the increasing adoption of online and mobile banking services, traditional banks are investing in digital transformation to meet the evolving needs of customers and stay competitive in the market. Moreover, there is a growing trend towards collaboration between traditional banks and fintech companies to offer innovative financial products and services.

Local special circumstances: Belgium's banking sector is characterized by a high degree of concentration, with a few major banks dominating the market. This concentration has led to intense competition among traditional commercial banks, prompting them to differentiate their offerings and improve efficiency to attract and retain customers. Additionally, the regulatory environment in Belgium plays a crucial role in shaping the operations of traditional banks, with stringent regulations aimed at ensuring financial stability and consumer protection.

Underlying macroeconomic factors: The macroeconomic environment in Belgium, including factors such as economic growth, interest rates, and inflation, influences the performance of the Traditional Commercial Banking market. Economic stability and growth prospects impact the demand for banking services, while interest rate changes affect banks' profitability and lending activities. Moreover, demographic shifts and changing consumer behaviors are also driving forces behind the evolving landscape of traditional banking in Belgium.

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.