Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Argentina

Argentina

In Argentina, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, with a projected value of US$11.82bn in 2024.
Looking ahead, this segment is anticipated to display a compound annual growth rate (CAGR 2024-2029) of -25.19%, leading to a market volume of US$2.77bn by 2029.
It is worth noting that China will dominate the global landscape, generating the highest Net Interest Income of US$2,426.0bn in 2024.
Traditional retail banking in Argentina is facing challenges due to increasing competition from digital banks and fintech startups.

Key regions: France, Brazil, Germany, United Kingdom, United States

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

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., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

Argentina's Traditional Retail Banking market is experiencing a shift in customer preferences, influenced by various trends and local special circumstances.

Customer preferences: Argentinian consumers are increasingly seeking convenience and personalized services in their banking experience. This has led to a growing demand for digital banking solutions and mobile banking applications, as customers look for easy access to their accounts and transactions on-the-go. Additionally, there is a rising interest in sustainable banking practices among customers, prompting banks to integrate environmental and social considerations into their services.

Trends in the market: One prominent trend in the Traditional Retail Banking market in Argentina is the expansion of fintech companies offering innovative financial solutions. These fintech firms are challenging traditional banks by providing alternative payment methods, online lending platforms, and digital wallets. As a result, traditional banks are investing in technology to enhance their digital capabilities and remain competitive in the market. Another trend is the increasing focus on financial inclusion, with efforts to provide banking services to unbanked populations in remote areas through mobile banking and agent banking services.

Local special circumstances: Argentina's economic volatility and high inflation rates have significantly impacted the Traditional Retail Banking market. Banks have had to adjust their strategies to mitigate risks associated with economic uncertainties and regulatory changes. Moreover, the country's complex regulatory environment and strict capital controls have influenced the operations and expansion plans of traditional banks in Argentina.

Underlying macroeconomic factors: The macroeconomic landscape in Argentina, characterized by fluctuating exchange rates and inflation, plays a crucial role in shaping the Traditional Retail Banking market. Economic instability has led to changes in consumer behavior and investment patterns, impacting the profitability and growth prospects of banks. Additionally, government policies and interventions in the banking sector, aimed at stabilizing the economy, have implications for the operations and performance of traditional banks in Argentina.

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.