Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Northern Africa

Northern Africa

In Northern Africa, the Traditional Commercial Banking market market is anticipated to witness a significant growth in its Net Interest Income, with projections indicating a substantial rise to reach US$30.04bn in 2024.
Moreover, it is expected that the Net Interest Income will continue to exhibit a steady annual growth rate (CAGR 2024-2029) of 6.80%, thereby resulting in a market volume of US$41.75bn by 2029.
When compared to other countries worldwide, China is poised to generate the highest Net Interest Income, with an estimated value of US$1,444.0bn in 2024.
In Northern Africa, traditional commercial banking is experiencing a shift towards digitalization, with banks investing in technology to enhance customer experience and streamline operations.

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

In Northern Africa, the Traditional Commercial Banking market is experiencing notable developments and trends driven by various factors.

Customer preferences: Customers in Northern Africa are increasingly seeking convenient and accessible banking services. They are showing a growing preference for digital banking solutions, such as online banking platforms and mobile applications, which offer flexibility and ease of use. Additionally, there is a rising demand for personalized services and tailored financial products to meet the diverse needs of customers in the region.

Trends in the market: In countries like Egypt, Morocco, and Algeria, the Traditional Commercial Banking market is witnessing a shift towards sustainable and socially responsible banking practices. Banks are incorporating environmental, social, and governance (ESG) criteria into their operations and investment decisions to align with global sustainability goals. Moreover, there is a noticeable trend towards financial inclusion, with banks expanding their reach to underserved populations through innovative banking solutions.

Local special circumstances: Northern Africa is characterized by a young and tech-savvy population, which is driving the adoption of digital banking services in the region. This demographic trend is shaping the way banks design their products and services to cater to the preferences of the younger generation. Additionally, the regulatory environment in Northern Africa plays a significant role in shaping the Traditional Commercial Banking market, with regulators focusing on enhancing transparency, stability, and consumer protection.

Underlying macroeconomic factors: The economic landscape of Northern Africa is influenced by factors such as economic growth, inflation rates, and political stability. Fluctuations in commodity prices, currency exchange rates, and regional conflicts can impact the stability of the banking sector in the region. Banks in Northern Africa are closely monitoring these macroeconomic factors to mitigate risks and capitalize on emerging opportunities in the Traditional Commercial Banking market.

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.