Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Canada

Canada

In Canada, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching a projected value of US$14.51bn in 2024.
Looking ahead, this segment is anticipated to display a Compound Annual Growth Rate (CAGR 2024-2029) of 0.37%, leading to a market volume of US$14.78bn 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.
Traditional Retail Banking in Canada is facing increasing competition from digital banks, leading to a shift towards online and mobile banking services.

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 Canada is experiencing significant changes and developments.

Customer preferences: Customers in Canada are increasingly demanding more personalized and convenient banking services. They are looking for seamless digital banking experiences, including online and mobile banking options. The shift towards digital channels is driven by the need for efficiency and accessibility in managing finances.

Trends in the market: One notable trend in the Canadian Traditional Retail Banking market is the rise of neobanks and fintech companies. These innovative players are disrupting the traditional banking sector by offering competitive rates, lower fees, and user-friendly digital platforms. As a result, traditional banks are investing heavily in digital transformation to stay competitive and meet evolving customer expectations.

Local special circumstances: Canada's unique geographic landscape, with vast distances between urban centers, has contributed to the adoption of online and mobile banking services. The need to provide banking access to customers in remote areas has pushed traditional banks to expand their digital capabilities. Additionally, Canada's diverse population with varying banking needs has led to the development of specialized products and services tailored to different demographic segments.

Underlying macroeconomic factors: The stable economic environment in Canada has fostered growth and innovation in the Traditional Retail Banking market. Low unemployment rates and steady GDP growth have supported consumer confidence and spending, driving demand for banking products and services. Additionally, regulatory reforms aimed at promoting competition and consumer protection have shaped the competitive landscape of the banking sector in Canada.

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.