Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Burundi

Burundi

In Burundi, the Traditional Retail Banking market market is projected to see a significant increase in its Net Interest Income.
By 2024, it is expected to reach US$157.90m.
Looking ahead, a steady annual growth rate of 5.82% (CAGR 2024-2029) is anticipated, resulting in a market volume of US$209.50m by 2029.
When compared to global figures, it is worth noting that China is expected to generate the highest Net Interest Income.
In 2024, China is projected to reach a staggering US$2,426.0bn in Net Interest Income.
Traditional retail banking in Burundi is experiencing a shift towards digital channels as consumers embrace mobile banking for convenience and accessibility.

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 Burundi is experiencing notable developments and trends that are shaping the industry in the country.

Customer preferences: Customers in Burundi are increasingly seeking more convenient and accessible banking services, driving the demand for digital banking solutions. The convenience of accessing banking services remotely and the ability to conduct transactions quickly and securely are becoming priorities for customers in the country.

Trends in the market: One of the key trends in the Traditional Retail Banking market in Burundi is the expansion of mobile banking services. With the high mobile penetration rate in the country, more customers are opting for mobile banking solutions to manage their finances. This trend is reshaping the way traditional banks operate and interact with their customers.

Local special circumstances: Burundi's banking sector is characterized by a high level of informality, with a significant portion of the population still unbanked. This presents both challenges and opportunities for traditional banks in the country to innovate and tailor their services to reach the underserved segments of the population. Additionally, the infrastructure development in the country plays a crucial role in the accessibility of banking services, especially in rural areas.

Underlying macroeconomic factors: The economic stability and regulatory environment in Burundi are influencing the growth of the Traditional Retail Banking market. As the country continues to focus on financial inclusion and economic development, traditional banks are adapting their strategies to align with the government's initiatives and regulations. Moreover, the overall economic growth and stability in Burundi are creating opportunities for traditional banks to expand their customer base and offer a wider range of products and services.

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.