Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Finland

Finland

In Finland, the Traditional Commercial Banking market market is expected to see a significant increase in Net Interest Income, reaching US$6.94bn in 2024.
It is projected that this growth will continue with an annual growth rate (CAGR 2024-2029) of 0.57%, leading to a market volume of US$7.14bn by 2029.
When comparing globally, it is noteworthy that China is anticipated to generate the highest amount of Net Interest Income in 2024, with a staggering US$1,444.0bn.
In Finland, traditional commercial banking 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.

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Analyst Opinion

The Traditional Commercial Banking market in Finland has been experiencing notable developments in recent years.

Customer preferences: Customers in Finland are increasingly seeking digital banking solutions that offer convenience and flexibility. The preference for online and mobile banking services has been driving banks in the country to invest in digital transformation to meet the evolving needs of their customers. Additionally, there is a growing demand for personalized services and tailored financial products among Finnish banking customers.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Finland is the consolidation of smaller banks. This trend has been driven by the need to achieve economies of scale, enhance competitiveness, and adapt to the changing regulatory environment. Moreover, sustainability and ethical banking practices have gained traction in Finland, with customers showing a preference for banks that demonstrate a commitment to environmental and social responsibility.

Local special circumstances: Finland's banking sector is characterized by a high level of digitalization and innovation. Finnish banks have been at the forefront of adopting cutting-edge technologies to improve customer experience and streamline operations. The country's small population size and concentrated banking sector have also contributed to a highly competitive market environment, prompting banks to differentiate themselves through innovative products and services.

Underlying macroeconomic factors: The development of the Traditional Commercial Banking market in Finland is closely tied to the overall economic conditions in the country. Factors such as GDP growth, interest rates, and regulatory policies play a significant role in shaping the landscape of the banking sector. Additionally, demographic trends, such as an aging population and urbanization, influence the demand for banking services and the strategic priorities of banks operating in Finland.

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.