Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Central & Western Europe

Central & Western Europe

In Central & Western Europe, the Traditional Commercial Banking market market is expected to witness a significant increase in Net Interest Income.
According to projections, this market segment is anticipated to reach a substantial amount of US$0.39tn in 2024.
Furthermore, the Net Interest Income is forecasted to exhibit a steady annual growth rate (CAGR 2024-2029) of 2.44%.
This growth trajectory is projected to result in a market volume of US$0.44tn by 2029.
When compared globally, it is worth noting that China is expected to generate the highest amount of Net Interest Income in 2024, with an estimated value of US$1,444.0bn.
This showcases the prominence of China in the global banking landscape.
In Germany, traditional commercial banking is undergoing digital transformation to meet the changing needs of customers.

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

In Central & Western Europe, the Traditional Commercial Banking market is experiencing significant developments driven by changing customer preferences, evolving trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Central & Western Europe are increasingly seeking personalized financial services, convenient digital banking solutions, and sustainable investment options. This shift in preferences is prompting traditional commercial banks to enhance their digital offerings, streamline their services, and incorporate ESG (Environmental, Social, and Governance) criteria into their investment portfolios to meet the evolving needs of their clientele.

Trends in the market: In countries like Germany and France, traditional commercial banks are focusing on expanding their online banking platforms, introducing mobile payment solutions, and investing in fintech partnerships to improve customer experience and remain competitive in the market. Moreover, there is a growing trend towards consolidation within the banking sector, with mergers and acquisitions becoming more prevalent as banks look to achieve economies of scale and enhance their market presence.

Local special circumstances: In Switzerland, the presence of a strong private banking sector alongside traditional commercial banks has created a unique competitive landscape. Swiss banks are known for their expertise in wealth management and financial services, attracting high-net-worth individuals and international clients. This specialization has positioned Swiss banks as key players in the global financial market.

Underlying macroeconomic factors: The low interest rate environment in Central & Western Europe is impacting the profitability of traditional commercial banks, leading them to explore alternative revenue streams and cost-cutting measures. Additionally, regulatory changes such as the implementation of Basel III requirements and the increasing focus on financial stability are shaping the strategies of banks in the region. Adapting to these macroeconomic factors is essential for the long-term sustainability and growth of traditional commercial banks in Central & Western Europe.

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.