Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Kazakhstan

Kazakhstan

In Kazakhstan, the Traditional Commercial Banking market market is expected to witness a significant growth in its Net Interest Income, which is projected to reach US$1.53bn by the year 2024.
Furthermore, it is anticipated that the Net Interest Income will exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 1.52%, leading to a market volume of US$1.65bn by 2029.
When compared globally, China is predicted to generate the highest Net Interest Income, with an estimated value of US$1,444.0bn in 2024.
Kazakhstan's traditional commercial banking sector is experiencing a shift towards digitalization to meet the evolving needs of its tech-savvy population.

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 Kazakhstan is experiencing significant growth and evolution.

Customer preferences: Customers in Kazakhstan are increasingly seeking more personalized and convenient banking services. This trend mirrors the global shift towards digital banking solutions and the demand for seamless online experiences. As a result, traditional banks in Kazakhstan are investing in digital transformation to meet customer expectations and stay competitive in the market.

Trends in the market: One notable trend in the Traditional Commercial Banking market in Kazakhstan is the emergence of fintech companies offering innovative financial products and services. These fintech firms are challenging traditional banks by providing agile and customer-centric solutions. In response, traditional banks are forming partnerships with fintech companies to enhance their service offerings and reach a broader customer base.

Local special circumstances: Kazakhstan's banking sector is heavily influenced by government policies and regulations. The National Bank of Kazakhstan plays a crucial role in overseeing the banking industry and ensuring financial stability. Additionally, the country's economic diversification efforts and focus on attracting foreign investment are shaping the development of the banking sector. These unique circumstances create both opportunities and challenges for traditional commercial banks operating in Kazakhstan.

Underlying macroeconomic factors: The growth of the Traditional Commercial Banking market in Kazakhstan is also influenced by macroeconomic factors such as GDP growth, inflation rates, and interest rates. A stable economic environment and favorable government policies can stimulate lending activities and drive the expansion of the banking sector. On the other hand, external factors like global economic trends and geopolitical events can impact the overall performance of traditional banks in Kazakhstan.

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.