Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - EAEU

EAEU

In the EAEU, the projected Net Interest Income in the Traditional Commercial Banking market market is expected to reach US$23.96bn by 2024.
Looking ahead, it is anticipated that the Net Interest Income will demonstrate an annual growth rate (CAGR 2024-2029) of 1.56%, leading to a market volume of US$25.89bn by 2029.
When compared on a global scale, it is noteworthy that China is expected to generate the highest Net Interest Income in the Traditional Commercial Banking market market, with an estimated value of US$1,444.0bn in 2024.
Traditional Commercial Banking in the EAEU is experiencing a shift towards digitalization, with banks investing in innovative technology to streamline processes and enhance customer experience.

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 EAEU is experiencing significant growth and evolution due to various factors shaping the industry landscape.

Customer preferences: Customers in the EAEU region are increasingly demanding more personalized and convenient banking services. They are looking for innovative digital solutions that offer ease of access to their accounts, seamless transactions, and efficient customer service. As a result, traditional commercial banks are adapting their offerings to meet these changing preferences and retain their customer base.

Trends in the market: In EAEU countries, there is a noticeable trend towards the adoption of digital banking services. Traditional commercial banks are investing in technology to offer online and mobile banking options, as well as digital payment solutions, to cater to the tech-savvy population. Moreover, there is a growing emphasis on sustainability and corporate social responsibility within the banking sector, with banks incorporating ESG (Environmental, Social, and Governance) criteria into their operations.

Local special circumstances: Each country in the EAEU region has its own unique set of circumstances that influence the traditional commercial banking market. For example, some countries may have a higher proportion of unbanked or underbanked populations, leading banks to focus on financial inclusion initiatives. Additionally, regulatory frameworks and government policies play a crucial role in shaping the banking sector in each EAEU country, impacting areas such as market competition, interest rates, and lending practices.

Underlying macroeconomic factors: Macroeconomic factors such as GDP growth, inflation rates, and exchange rate fluctuations have a significant impact on the traditional commercial banking market in the EAEU region. Economic stability and growth can drive increased demand for banking services, while economic downturns may lead to higher levels of non-performing loans and credit risk for banks. Geopolitical developments and international trade agreements also influence the macroeconomic environment in EAEU countries, affecting the overall performance of the banking sector.

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.