Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Armenia

Armenia

In Armenia, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching a projected amount of US$88.68m in the year 2024.
This growth is anticipated to continue at a compound annual growth rate (CAGR) of 11.51% from 2024 to 2029, resulting in a market volume of US$152.90m by the end of 2029.
When compared globally, China is expected to generate the highest Net Interest Income, with a projected amount of US$2,426.0bn in 2024.
Armenia's traditional retail banking market is experiencing a shift towards digitalization, with an increasing number of customers opting for online banking services.

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

Armenia, a country known for its rich history and vibrant culture, is experiencing interesting developments in its Traditional Retail Banking market.

Customer preferences: Armenian customers are increasingly leaning towards digital banking solutions, driven by the convenience and efficiency they offer. This shift in preferences is in line with global trends where customers are seeking more accessible and user-friendly banking services. However, there is still a significant portion of the population that values in-person interactions and personalized services provided by traditional brick-and-mortar banks.

Trends in the market: One notable trend in the Armenian Traditional Retail Banking market is the growing competition among banks to enhance their digital offerings. This trend is fueled by the rising demand for online and mobile banking services, pushing banks to invest in technology to stay competitive. Moreover, there is a noticeable increase in the adoption of fintech solutions, further reshaping the banking landscape in Armenia.

Local special circumstances: Armenia's banking sector is unique due to its relatively small size and the dominance of a few key players. This market structure influences the strategies and offerings of banks operating in the country, as they strive to differentiate themselves and attract customers in a limited market. Additionally, the country's geographical location and political environment play a role in shaping the banking sector, impacting factors such as regulations and foreign investment.

Underlying macroeconomic factors: The macroeconomic landscape in Armenia, including factors such as GDP growth, inflation rates, and exchange rate stability, significantly influences the Traditional Retail Banking market. Economic stability and growth contribute to increased consumer confidence and spending, driving demand for banking products and services. On the other hand, economic uncertainties can lead to changes in customer behavior and preferences, impacting the strategies of banks in the 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.