Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Australia & Oceania

Australia & Oceania

In Australia & Oceania, the Net Interest Income in the Traditional Retail Banking market market is estimated to reach US$12.54bn in 2024.
It is projected to exhibit an annual growth rate (CAGR 2024-2029) of -4.85%, leading to a market volume of US$9.78bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
Australia's traditional retail banking market remains strong, with a focus on personalized customer service and a growing shift towards digital banking solutions.

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

The Traditional Retail Banking market in Australia & Oceania has been experiencing significant changes and developments in recent years.

Customer preferences: Customers in the Australian and Oceanian region are increasingly seeking more convenient and efficient banking services. With the rise of digitalization and technological advancements, there is a growing preference for online and mobile banking options. Customers are looking for seamless digital experiences, personalized services, and round-the-clock accessibility to their banking needs.

Trends in the market: In Australia, there is a noticeable trend towards the closure of physical bank branches as more customers opt for digital banking channels. This shift is driven by cost-cutting measures by banks and the changing preferences of tech-savvy consumers. On the other hand, in some Oceanian countries where access to digital infrastructure is limited, traditional brick-and-mortar bank branches still play a crucial role in serving customers.

Local special circumstances: Australia, being a developed country with a high level of digital adoption, is at the forefront of digital banking transformation. The market is highly competitive, with both traditional banks and digital-only players vying for market share. In contrast, some Oceanian countries face challenges such as limited internet connectivity and geographical barriers, leading to a slower adoption of digital banking services.

Underlying macroeconomic factors: The overall economic stability and growth in Australia have contributed to the rapid evolution of the traditional retail banking sector. As the economy continues to expand, banks are investing more in digital infrastructure and innovative technologies to meet the changing needs of customers. In Oceanian countries, economic factors such as GDP growth, inflation rates, and foreign investment play a significant role in shaping the traditional retail banking landscape.

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.