Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - BRICS

BRICS

In BRICS, the Traditional Commercial Banking market market is anticipated to witness a significant surge in Net Interest Income, projected to reach US$1.70tn in 2024.
Furthermore, the market is expected to display a steady annual growth rate (CAGR 2024-2029) of 5.95%, leading to a substantial increase in market volume, reaching US$2.27tn by 2029.
It is worth noting that China is expected to generate the highest Net Interest Income globally, with a projected value of US$1,444.0bn in 2024.
In Brazil, traditional commercial banks are facing increased competition from fintech companies, leading to the adoption of digital banking solutions.

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

The Traditional Commercial Banking market in BRICS countries is experiencing dynamic changes driven by various factors influencing customer preferences, market trends, and local special circumstances.

Customer preferences: Customers in BRICS countries are increasingly seeking personalized banking services that cater to their specific needs and preferences. With the rise of digital banking solutions, customers are looking for convenient and efficient ways to access and manage their finances. Additionally, there is a growing demand for sustainable banking practices and socially responsible investments among customers in these emerging markets.

Trends in the market: In Brazil, the Traditional Commercial Banking market is witnessing a trend towards consolidation as larger banks acquire smaller regional players to expand their market share and reach. This trend is driven by the need for economies of scale and increased competitiveness in the sector. Moreover, the adoption of technology and digital banking solutions is rapidly growing in Brazil, with banks investing in innovative platforms to enhance customer experience and operational efficiency. In Russia, the Traditional Commercial Banking market is characterized by a focus on strengthening risk management practices and compliance with regulatory requirements. Russian banks are increasingly investing in technology to combat financial crime and improve cybersecurity measures. Additionally, there is a trend towards offering a wider range of financial products and services to customers to increase revenue streams and enhance customer loyalty. In India, the Traditional Commercial Banking market is experiencing a shift towards mobile banking and digital payment solutions. With the government's push towards financial inclusion and the rise of fintech companies, traditional banks are adapting their business models to stay competitive in the market. There is also a growing trend towards sustainable banking practices in India, with banks incorporating environmental and social considerations into their operations. In China, the Traditional Commercial Banking market is characterized by fierce competition among domestic banks vying for market share. Chinese banks are investing heavily in technology and innovation to provide seamless digital banking experiences to customers. Moreover, there is a trend towards expanding internationally and establishing a global presence to diversify revenue streams and mitigate risks associated with the domestic market.

Local special circumstances: Each BRICS country has its unique set of circumstances shaping the Traditional Commercial Banking market. In Brazil, economic volatility and regulatory changes influence market dynamics. In Russia, geopolitical factors and oil prices play a significant role in the banking sector. In India, demographic shifts and government policies impact banking trends. In China, rapid urbanization and technological advancements drive market developments.

Underlying macroeconomic factors: The Traditional Commercial Banking market in BRICS countries is influenced by macroeconomic factors such as GDP growth, inflation rates, interest rates, and exchange rate fluctuations. Economic stability, regulatory reforms, technological advancements, and demographic changes also play a crucial role in shaping the market dynamics in these emerging economies.

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.