Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Croatia

Croatia

In Croatia, the Traditional Retail Banking market market is forecasted to experience a significant increase in Net Interest Income, reaching US$1.00bn by 2024.
This projection indicates a positive growth trend for the country's banking sector.
Furthermore, it is expected that the Net Interest Income will continue to expand at a Compound Annual Growth Rate (CAGR) of -1.87% between 2024 and 2029, resulting in a market volume of US$0.91bn by the end of the forecast period.
This growth signifies the potential for further development and profitability within the Croatian banking industry.
When comparing the global market, it is noteworthy that China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
This highlights the dominant position of the United States in the global banking landscape, surpassing other countries in terms of financial performance.
However, it is crucial to consider the unique market dynamics and opportunities present in Croatia, which may contribute to its own success and growth within the Traditional Retail Banking market segment.
In Croatia, traditional retail banking is experiencing a decline in popularity due to the increasing adoption of digital 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 Croatia is witnessing an interesting shift in customer preferences and market trends, driven by unique local circumstances and underlying macroeconomic factors.

Customer preferences: Customers in Croatia are increasingly demanding more personalized and convenient banking services, leading traditional retail banks to invest in digitalization and innovation. The younger generation, in particular, is gravitating towards online and mobile banking solutions, pushing banks to enhance their digital offerings to stay competitive in the market.

Trends in the market: One notable trend in the Croatian market is the growing popularity of digital-only banks and fintech companies. These new players are challenging traditional banks by offering innovative products and services tailored to the digital-savvy customer base. As a result, traditional retail banks are facing pressure to adapt their business models and improve their digital capabilities to meet changing customer expectations.

Local special circumstances: Croatia's banking sector is characterized by a high level of competition among traditional banks, as well as increasing regulatory requirements. This competitive landscape, coupled with the country's relatively small market size, is pushing banks to explore new ways to differentiate themselves and attract customers. Additionally, the tourism industry plays a significant role in the Croatian economy, influencing the banking sector's focus on providing specialized services for tourists and foreign visitors.

Underlying macroeconomic factors: The Croatian economy has been experiencing steady growth in recent years, supported by factors such as increasing consumer confidence and rising disposable incomes. This economic stability has translated into higher demand for banking products and services, driving traditional retail banks to expand their offerings and improve customer experience. Additionally, ongoing efforts to align with EU banking regulations are shaping the market landscape and influencing banks' strategic decisions in Croatia.

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.