Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Benelux

Benelux

In Benelux, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, reaching US$6.38bn by the year 2024.
This projected growth is expected to continue with a compound annual growth rate (CAGR 2024-2029) of -3.71%.
Consequently, the market volume is estimated to reach US$5.28bn by 2029.
When compared on a global scale, it is noteworthy that China is poised to generate the highest Net Interest Income in 2024, amounting to US$2,426.0bn.
In the traditional retail banking market in Benelux, digitalization has led to a decline in physical branch visits and an increase in online banking transactions.

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 Benelux is experiencing significant changes and developments.

Customer preferences: Customers in the Benelux region are increasingly seeking digital banking solutions that offer convenience and flexibility. The demand for online and mobile banking services is on the rise as customers look for ways to manage their finances easily and efficiently. Additionally, there is a growing preference for personalized banking experiences tailored to individual needs and preferences.

Trends in the market: One of the key trends in the Traditional Retail Banking market in Benelux is the shift towards digitalization and the adoption of fintech solutions. Traditional banks are facing competition from digital-only banks and fintech startups that are offering innovative services such as peer-to-peer payments, robo-advisors, and mobile wallet solutions. As a result, traditional banks in the Benelux region are investing in digital transformation to stay competitive and meet the evolving needs of their customers.

Local special circumstances: In the Benelux region, the market is characterized by a high level of competition among traditional banks as well as from new entrants in the fintech space. This competitive landscape is driving banks to differentiate themselves through innovative products and services, as well as by enhancing the customer experience. Additionally, the regulatory environment in Benelux plays a significant role in shaping the market dynamics, with stringent regulations aimed at ensuring consumer protection and financial stability.

Underlying macroeconomic factors: The macroeconomic environment in the Benelux region, including factors such as economic growth, interest rates, and consumer confidence, has a direct impact on the Traditional Retail Banking market. Economic growth and low-interest rates can stimulate borrowing and spending, leading to increased demand for banking products and services. Conversely, economic downturns or uncertainty can result in lower consumer confidence and reduced demand for banking services. As such, traditional banks in Benelux closely monitor macroeconomic indicators to anticipate market trends and adjust their strategies accordingly.

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.