Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Central Asia

Central Asia

In Central Asia, the Traditional Retail Banking market market is projected to witness a significant growth in Net Interest Income, with an estimated value of US$14.34bn in 2024.
Looking ahead, this market segment is expected to maintain a steady annual growth rate (CAGR 2024-2029) of -5.58%, leading to a market volume of US$10.76bn by 2029.
When comparing the global landscape, it is noteworthy that China will continue to dominate the market, generating the highest Net Interest Income of US$2,426.0bn in 2024.
In Central Asia, traditional retail banking is thriving as consumers continue to rely on brick-and-mortar branches for their financial needs.

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 Central Asia is experiencing a shift in customer preferences, driving various trends in the market.

Customer preferences: Customers in Central Asia are increasingly seeking convenience and efficiency in their banking services. This has led to a growing demand for digital banking solutions such as online banking, mobile banking, and digital payment options. Additionally, customers are placing more emphasis on personalized services and tailored financial products that cater to their individual needs and preferences.

Trends in the market: One of the prominent trends in the Traditional Retail Banking market in Central Asia is the expansion of digital banking services. Banks in the region are investing in technology to enhance their digital offerings and improve the overall customer experience. This trend is driven by the growing tech-savvy population in Central Asia and the increasing adoption of smartphones and internet connectivity.

Local special circumstances: Central Asia is a region with diverse cultural and linguistic backgrounds, which presents a unique challenge for banks operating in the area. To address this, banks are focusing on providing multilingual support and culturally sensitive services to cater to the needs of different customer segments. Moreover, the underdeveloped banking infrastructure in some parts of Central Asia is prompting banks to innovate and adapt their services to local conditions.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Central Asia are contributing to the development of the Traditional Retail Banking market. As the middle class expands and incomes rise, there is a growing demand for a wide range of banking products and services. Additionally, the government initiatives to promote financial inclusion and improve access to banking services are further driving the growth of the market in the region.

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.