Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - ASEAN

ASEAN

In ASEAN, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, with a projected value of US$76.51bn in 2024.
Looking ahead, it is expected that the Net Interest Income will continue to grow at a compound annual growth rate (CAGR 2024-2029) of 2.48%, leading to a market volume of US$86.46bn by 2029.
When compared globally, China will dominate in terms of Net Interest Income generation, with a staggering amount of US$2,426.0bn in 2024.
In the traditional retail banking market in ASEAN, Indonesia is experiencing a shift towards digital banking due to its large population and growing smartphone penetration.

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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Retail Banking market in ASEAN is experiencing dynamic changes driven by shifting customer preferences, evolving trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in ASEAN countries are increasingly seeking convenience, personalized services, and digital banking solutions. With the rise of tech-savvy consumers, there is a growing demand for seamless online and mobile banking experiences. Moreover, customers are placing greater emphasis on financial literacy and transparency, influencing their choices in traditional retail banking services.

Trends in the market: In Singapore, the Traditional Retail Banking market is witnessing a trend towards sustainable and socially responsible banking practices. Customers are showing a preference for banks that prioritize environmental, social, and governance (ESG) factors in their operations. This trend is reshaping product offerings and marketing strategies in the banking sector, with institutions incorporating ESG principles into their core business models.

Local special circumstances: In Indonesia, the Traditional Retail Banking market is influenced by the country's diverse demographic landscape and geographical spread. As a result, banks are focusing on expanding their branch networks to reach unbanked populations in rural areas. Additionally, the government's initiatives to promote financial inclusion are driving partnerships between banks and local communities to provide accessible banking services.

Underlying macroeconomic factors: The Traditional Retail Banking market in Malaysia is impacted by macroeconomic factors such as interest rates and economic stability. Fluctuations in interest rates influence borrowing costs for consumers and businesses, affecting their demand for banking products. Economic stability plays a crucial role in shaping consumer confidence and spending patterns, which in turn impact the overall growth of the retail banking sector.

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.