Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Bahrain

Bahrain

In Bahrain, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, projected to reach US$128.30m in 2024.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2029) of -1.73%, resulting in a market volume of US$117.60m by 2029.
When compared globally, it is worth noting that China will generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
Bahrain's traditional retail banking market is witnessing a shift towards digital channels, with mobile banking becoming increasingly popular among customers.

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 Bahrain is witnessing significant developments and trends that are shaping the industry landscape.

Customer preferences: Customers in Bahrain are increasingly seeking convenience and personalized services from their traditional retail banks. With the rise of digitalization and technology, customers are looking for seamless online and mobile banking experiences. The demand for 24/7 accessibility to banking services and quick response times from customer support is also on the rise.

Trends in the market: One notable trend in the Bahraini Traditional Retail Banking market is the growing competition from digital banks and fintech companies. These new entrants are disrupting the market with innovative products and services, forcing traditional banks to enhance their digital offerings to stay competitive. Moreover, there is a shift towards sustainable and socially responsible banking practices in Bahrain, with customers showing a preference for banks that prioritize environmental and social initiatives.

Local special circumstances: Bahrain's position as a financial hub in the Middle East region plays a significant role in shaping its Traditional Retail Banking market. The country's regulatory environment, which is known for its transparency and efficiency, attracts international banks to establish a presence in Bahrain. Additionally, the government's initiatives to promote fintech innovation and entrepreneurship are creating a conducive environment for the growth of the banking sector.

Underlying macroeconomic factors: The stability of Bahrain's economy and its strategic location in the Gulf region contribute to the growth of the Traditional Retail Banking market. As the economy diversifies beyond oil and gas, there is a growing demand for banking services to support various industries. Additionally, Bahrain's strong regulatory framework and commitment to financial stability provide a solid foundation for the banking sector to thrive.

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.