Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Thailand

Thailand

In Thailand, the Traditional Commercial Banking market market is anticipated to witness a significant increase in Net Interest Income, with projections indicating a value of US$8.02bn by 2024.
This growth is expected to continue steadily, with an annual growth rate (CAGR 2024-2029) of 3.42%.
As a result, the market volume is predicted to reach US$9.49bn by 2029.
When compared globally, it is worth noting that China is projected to generate the highest Net Interest Income in the Traditional Commercial Banking market sector, amounting to US$1,444.0bn in 2024.
Despite the rise of digital banking, traditional commercial banking remains a dominant force in Thailand's financial landscape.

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 Thailand is experiencing notable shifts and developments in response to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Thailand are increasingly seeking more personalized and convenient banking services, leading traditional commercial banks to invest in digital transformation and innovative technologies to enhance customer experience. The demand for seamless online banking, mobile payment solutions, and personalized financial advice is driving banks to adapt their services to meet these evolving preferences.

Trends in the market: One significant trend in the Traditional Commercial Banking market in Thailand is the growing competition from digital banks and fintech companies. These new entrants are disrupting the market with agile and customer-centric solutions, forcing traditional banks to rethink their strategies and offerings. Additionally, there is a noticeable shift towards sustainable and socially responsible banking practices, with customers showing a preference for banks that prioritize environmental and social impact.

Local special circumstances: Thailand's unique regulatory environment and cultural preferences play a crucial role in shaping the Traditional Commercial Banking market. The regulatory landscape in Thailand is evolving to promote innovation and competition while ensuring financial stability. Moreover, cultural factors such as a strong emphasis on relationships and trust influence customer preferences for traditional banking services despite the rise of digital alternatives.

Underlying macroeconomic factors: The economic landscape in Thailand, including factors such as GDP growth, interest rates, and inflation, impacts the Traditional Commercial Banking market. Economic stability and growth drive demand for banking services, while fluctuations in interest rates and inflation rates influence lending and investment decisions by commercial banks. Additionally, global economic trends and geopolitical developments can have ripple effects on the banking sector in Thailand.

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.