Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Central & Western Europe

Central & Western Europe

In Central & Western Europe, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income.
According to projections, by 2024, the Net Interest Income is estimated to reach a substantial amount of US$168.40bn.
This indicates the financial strength of the market segment in the region.
Furthermore, the Net Interest Income is anticipated to display a steady annual growth rate of 2.73% between 2024 and 2029, resulting in a market volume of US$192.70bn by the end of the period.
This growth highlights the resilience and potential of the Traditional Retail Banking market market in Central & Western Europe.
In terms of global comparison, it is noteworthy that China is expected to generate the highest amount of Net Interest Income.
The projected figure for 2024 China is a staggering US$2,426.0bn, illustrating the dominance of the American market in this segment.
These numbers demonstrate the significance and competitiveness of the Traditional Retail Banking market sector in Central & Western Europe, while also providing valuable insights into the global landscape.
In Germany, traditional retail banking is facing increased competition from digital-only banks and fintech start-ups.

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

Amidst the evolving landscape of Central & Western Europe, the Traditional Retail Banking market is experiencing significant shifts and developments.

Customer preferences: Customers in Central & Western Europe are increasingly seeking convenience and efficiency in their banking services. This has led to a growing demand for digital banking solutions and online services that offer seamless transactions and easy access to account information.

Trends in the market: In countries like Germany and France, there is a noticeable trend towards branch consolidation and digital transformation within traditional retail banks. This shift is driven by the need to reduce operational costs and adapt to changing consumer behaviors. Additionally, there is a growing emphasis on personalized banking experiences and tailored financial products to cater to diverse customer needs.

Local special circumstances: In Italy and Spain, where traditional values and personal relationships hold significant importance, traditional retail banks are focusing on maintaining a balance between digital innovation and personalized customer service. This unique approach allows banks to leverage technology while preserving the human touch that customers value.

Underlying macroeconomic factors: The economic stability and regulatory environment in Central & Western Europe play a crucial role in shaping the traditional retail banking market. With low interest rates and increasing competition from non-traditional players, banks are under pressure to innovate and differentiate their offerings to stay competitive. Additionally, regulatory changes such as PSD2 have opened up opportunities for collaboration and partnerships within the industry.

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.