Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Hungary

Hungary

In Hungary, the Traditional Commercial Banking market market is anticipated to witness a significant rise in Net Interest Income, with projections indicating it will reach US$6.12bn in 2024.
Looking ahead, this sector is expected to maintain a steady growth rate with a Compound Annual Growth Rate (CAGR 2024-2029) of 4.51%, leading to a market volume of US$7.63bn by 2029.
It is worth noting that in a global context, China is expected to generate the highest Net Interest Income, estimated at US$1,444.0bn in 2024.
Hungary's traditional commercial banking sector is experiencing a shift towards digitalization, with an emphasis on 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

Hungary's Traditional Commercial Banking market is experiencing notable trends and developments that are shaping the industry in the country.

Customer preferences: Customers in Hungary are increasingly seeking personalized and convenient banking services. They value traditional banking products and services, but also show a growing interest in digital banking solutions that offer ease of access and efficiency.

Trends in the market: One of the key trends in Hungary's Traditional Commercial Banking market is the digital transformation of banking services. Traditional banks are investing in digital platforms and technologies to meet the changing needs of customers and stay competitive in the market. Moreover, there is a trend towards sustainable banking practices, with banks offering green financial products and incorporating ESG criteria into their operations.

Local special circumstances: In Hungary, the Traditional Commercial Banking market is influenced by regulatory changes and government initiatives aimed at promoting financial stability and innovation in the sector. The presence of both domestic and foreign banks in the market creates a competitive environment that drives banks to improve their services and offerings to attract and retain customers.

Underlying macroeconomic factors: The development of Hungary's Traditional Commercial Banking market is also influenced by macroeconomic factors such as economic growth, inflation rates, and interest rates. A stable economic environment and favorable interest rate policies can support the growth of the banking sector by encouraging investment and lending activities. Additionally, demographic trends and changes in consumer behavior play a role in shaping the demand for banking services in Hungary.

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.