Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Turkey

Turkey

In Turkey, the Traditional Commercial Banking market market is expected to witness a significant increase in Net Interest Income, reaching a projected value of US$3.23bn by 2024.
This indicates a positive outlook for the banking sector in the country.
Furthermore, the Net Interest Income is projected to experience steady growth with a compound annual growth rate (CAGR) of 1.03% during the period of 2024-2029.
As a result, the market volume is estimated to reach US$3.40bn by 2029.
In terms of global comparison, it is noteworthy that China is expected to generate the highest Net Interest Income in the Traditional Commercial Banking market market, with a staggering amount of US$1,444.0bn projected for 2024.
This highlights the dominance of the Chinese banking sector on the global stage.
Turkey's traditional commercial banking sector is experiencing a shift towards digitalization, with an increasing number of customers opting for online banking services.

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 Turkey has been experiencing notable developments in recent years.

Customer preferences: Customers in Turkey have shown a growing inclination towards digital banking services, opting for convenient and efficient online banking solutions. This shift in preferences is driven by the increasing penetration of smartphones and the internet, making digital banking platforms more accessible and user-friendly.

Trends in the market: One prominent trend in the Traditional Commercial Banking market in Turkey is the expansion of Islamic banking services. With a significant Muslim population in the country, there is a rising demand for Sharia-compliant financial products and services. As a result, many traditional banks in Turkey have started offering Islamic banking options to cater to this specific customer segment.

Local special circumstances: Turkey's geographical location as a bridge between Europe and Asia has positioned it as a key player in the banking sector. The country serves as a financial hub, attracting foreign investments and fostering international banking relationships. This unique position has contributed to the growth and development of the Traditional Commercial Banking market in Turkey.

Underlying macroeconomic factors: The economic stability and growth in Turkey have also played a crucial role in shaping the Traditional Commercial Banking market. Favorable government policies, coupled with a resilient banking sector, have created a conducive environment for banks to expand their operations and introduce innovative financial products. Additionally, the increasing integration of Turkey into the global economy has opened up new opportunities for traditional banks to diversify their services and attract a more diverse customer base.

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.