Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - South America

South America

In South America, the Traditional Commercial Banking market market is expected to witness a significant growth in Net Interest Income.
By 2024, it is projected to reach a substantial amount of US$116.00bn.
Looking ahead, the market is anticipated to maintain a steady annual growth rate (CAGR 2024-2029) of -0.31%.
This growth trajectory is expected to result in a market volume of US$114.20bn by 2029.
In a global context, it is noteworthy that in China is projected to generate the highest Net Interest Income.
In 2024, in China's Net Interest Income is estimated to reach an impressive US$1,444.0bn.
The traditional commercial banking sector in South America is experiencing a shift towards digital banking services to meet the evolving needs of consumers.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Commercial Banking market in South America is experiencing notable trends and developments that are shaping the industry.

Customer preferences: Customers in South America are increasingly seeking personalized banking services tailored to their specific needs and preferences. They value convenience, efficiency, and a seamless digital banking experience. As a result, traditional banks in the region are focusing on enhancing their digital capabilities to meet the growing demand for online and mobile banking services.

Trends in the market: In Brazil, one of the largest economies in South America, traditional commercial banks are facing stiff competition from digital banks and fintech companies. These new players are disrupting the market with innovative products and services, attracting a younger demographic that prefers digital banking solutions. As a response, traditional banks are investing in technology and partnerships to stay competitive and retain their customer base.

Local special circumstances: In Argentina, economic instability and inflation have posed challenges for the traditional commercial banking sector. As a result, banks in the country have been focusing on risk management and regulatory compliance to navigate the uncertain economic environment. Additionally, the government's intervention in the banking sector has influenced lending practices and interest rates, impacting the profitability of traditional banks.

Underlying macroeconomic factors: Political and economic factors play a significant role in shaping the Traditional Commercial Banking market in South America. Countries in the region with stable economic growth and favorable regulatory environments are witnessing growth in their banking sectors. However, volatility in commodity prices, currency fluctuations, and geopolitical risks can impact the performance of traditional banks in South America. Adapting to these macroeconomic factors is crucial for the long-term sustainability of traditional commercial banks in the region.

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.