Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Israel

Israel

In Israel, the Traditional Commercial Banking market market is expected to witness a significant growth in terms of Net Interest Income.
It is projected to reach US$8.13bn in 2024.
Looking ahead, the market is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of -3.37%, leading to a market volume of US$6.85bn by 2029.
When compared globally, China is forecasted to generate the highest Net Interest Income, with a staggering amount of US$1,444.0bn in 2024.
The traditional commercial banking sector in Israel is experiencing a shift towards digitalization, with more customers opting for 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

Amidst a dynamic economic landscape, the Traditional Commercial Banking market in Israel is experiencing notable shifts and developments.

Customer preferences: Customers in Israel are increasingly seeking personalized and digital banking solutions that offer convenience and efficiency. With a growing tech-savvy population, there is a rising demand for online banking services and mobile applications that provide easy access to financial transactions and account management.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Israel is the emergence of fintech companies offering innovative financial solutions. These fintech firms are disrupting the market by providing alternative banking services and digital payment options, challenging traditional banks to adapt and enhance their offerings to remain competitive.

Local special circumstances: Israel's unique position as a global hub for technology and innovation is influencing the Traditional Commercial Banking market. The country's vibrant startup ecosystem and strong emphasis on research and development are driving collaboration between banks and tech companies to create cutting-edge financial products and services tailored to the needs of the digital economy.

Underlying macroeconomic factors: The macroeconomic environment in Israel, characterized by steady economic growth and a stable financial system, is fostering a conducive atmosphere for the development of the Traditional Commercial Banking market. As the country continues to attract foreign investment and expand its global presence, banks are leveraging these opportunities to expand their customer base and enhance their market position.

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.