Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Bangladesh

Bangladesh

In Bangladesh, the Traditional Retail Banking market market is anticipated to witness a significant surge in Net Interest Income, projected to reach US$0.81bn in 2024.
Moreover, it is expected that the Net Interest Income will exhibit an annual growth rate of 4.92% (CAGR 2024-2029), leading to a market volume of US$1.03bn by 2029.
When compared globally, it is worth noting that China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
In Bangladesh, traditional retail banking is facing stiff competition from digital banking solutions, leading to a shift in customer preferences.

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 Bangladesh has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Bangladesh are increasingly seeking convenient and accessible banking services, leading to a rise in demand for traditional retail banking products. The preference for personalized services and face-to-face interactions with bank representatives remains strong in the country, driving the growth of brick-and-mortar bank branches.

Trends in the market: One notable trend in the Traditional Retail Banking market in Bangladesh is the expansion of digital banking services to cater to the tech-savvy population. Banks are investing in online and mobile banking platforms to offer customers a seamless banking experience. Additionally, there is a growing trend towards financial inclusion, with banks focusing on reaching unbanked populations in rural areas through innovative products and services.

Local special circumstances: Bangladesh's unique market dynamics, such as a large population with increasing disposable income and a growing middle class, are contributing to the expansion of the Traditional Retail Banking sector. The country's regulatory environment and government initiatives to promote financial literacy and inclusion are also shaping the market landscape.

Underlying macroeconomic factors: The stable economic growth and increasing GDP per capita in Bangladesh are providing a favorable environment for the growth of the Traditional Retail Banking market. As the economy continues to develop, more individuals and businesses are looking to engage with formal banking institutions, driving the demand for traditional retail banking services. Additionally, factors such as urbanization, infrastructure development, and a young demographic profile are influencing the market trends in the country.

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.