Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Jordan

Jordan

In Jordan, the Traditional Commercial Banking market market is expected to witness a significant increase in Net Interest Income, reaching a projected value of US$1.28bn by 2024.
This suggests a positive growth trend in the country's banking sector.
Furthermore, the Net Interest Income is predicted to exhibit an annual growth rate of 5.21% between 2024 and 2029, resulting in a market volume of US$1.65bn by the end of the forecast period.
This demonstrates the potential for continued expansion and development in the Jordanian banking industry.
When comparing the global landscape, it is worth noting that the highest Net Interest Income is anticipated to be generated China, with an estimated value of US$1,444.0bn in 2024.
This highlights the significant scale of China's banking sector and its dominance in terms of Net Interest Income generation.
Overall, the Traditional Commercial Banking market market in Jordan is poised for growth, with Net Interest Income expected to increase steadily over the forecast period.
The country's banking sector is expected to play a crucial role in contributing to the overall economic development and stability of Jordan.
Jordan's traditional commercial banking market is experiencing steady growth due to the country's stable economy and strong regulatory framework.

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 Jordan is experiencing notable developments and trends that are shaping the industry landscape.

Customer preferences: Customers in Jordan are increasingly seeking personalized and convenient banking services, driving traditional commercial banks to enhance their digital offerings and customer service experiences. The demand for online and mobile banking solutions is on the rise as customers prioritize efficiency and accessibility in their banking interactions.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Jordan is the growing adoption of fintech solutions and partnerships. Traditional banks are collaborating with fintech companies to innovate their services, streamline operations, and reach a wider customer base. This trend is driven by the need to stay competitive in a rapidly evolving financial services landscape.

Local special circumstances: Jordan's banking sector is characterized by a strong regulatory environment that promotes stability and transparency. The Central Bank of Jordan plays a crucial role in overseeing the banking industry and ensuring compliance with regulatory requirements. This regulatory framework provides a level of trust and security for customers, contributing to the overall resilience of the banking sector.

Underlying macroeconomic factors: The macroeconomic landscape in Jordan, including factors such as GDP growth, inflation rates, and government policies, significantly influences the Traditional Commercial Banking market. Economic stability and growth are essential for the banking sector to thrive, as they impact factors like loan demand, interest rates, and overall investment climate. Adapting to macroeconomic changes and uncertainties is essential for traditional banks in Jordan to navigate market challenges and seize opportunities for growth.

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.