Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Burundi

Burundi

The Traditional Commercial Banking market market in Burundi is projected to reach a Net Interest Income of US$221.10m in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.57%, leading to a market volume of US$276.50m by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income, amounting to US$1,444.0bn in 2024.
Despite facing challenges, Burundi's traditional commercial banking sector is experiencing steady growth, driven by increased access to financial services and a growing economy.

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 the evolving landscape of the financial sector in Burundi, the Traditional Commercial Banking market is experiencing notable shifts and developments.

Customer preferences: Customers in Burundi are increasingly seeking more convenient and accessible banking services. This has led to a growing demand for digital banking solutions, such as online banking platforms and mobile banking apps. Additionally, customers are placing a higher emphasis on personalized services and efficient customer support from their banks.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Burundi is the expansion of branch networks to reach more unbanked or underbanked populations in rural areas. Banks are also focusing on developing innovative products and services to cater to the specific needs of different customer segments. Furthermore, there is a noticeable trend towards sustainable banking practices and socially responsible investments in the country.

Local special circumstances: Burundi's Traditional Commercial Banking market is influenced by unique local circumstances, such as political stability and regulatory environment. The country's economy heavily relies on agriculture, which impacts the lending practices and risk management strategies of banks. Moreover, the prevalence of informal financial services in certain regions poses a challenge for traditional banks to attract and retain customers.

Underlying macroeconomic factors: The performance of the Traditional Commercial Banking market in Burundi is closely tied to macroeconomic factors such as GDP growth, inflation rates, and foreign exchange reserves. Economic stability and government policies play a significant role in shaping the banking sector's growth and profitability. Additionally, external factors like regional economic integration and international trade agreements can impact the market dynamics in Burundi.

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.