Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Egypt

Egypt

In Egypt, the Traditional Retail Banking market market is expected to witness significant growth in Net Interest Income.
By 2024, the projected Net Interest Income is estimated to reach US$26.32bn.
Looking ahead, there is an anticipated annual growth rate (CAGR 2024-2029) of 4.84%, which would result in a market volume of US$33.33bn by 2029.
When comparing in Egypt to other countries globally, it is noteworthy that in China is expected to generate the highest Net Interest Income.
In 2024, in China is projected to have a Net Interest Income of US$2,426.0bn.
Despite the rise of digital banking, traditional retail banking remains dominant in Egypt, with physical branches still playing a crucial role in serving customers.

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 Egypt is experiencing a shift driven by changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Egypt are increasingly seeking convenience and accessibility in their banking services. This has led to a growing demand for digital banking solutions that offer ease of access to accounts, transactions, and other financial services. Additionally, customers are placing a higher value on personalized services and tailored financial products that cater to their specific needs and preferences.

Trends in the market: One of the key trends in the Traditional Retail Banking market in Egypt is the rapid adoption of digital banking channels. With the increasing penetration of smartphones and the internet, more customers are opting for online and mobile banking services. This trend is driving banks to invest in digital infrastructure and innovative technologies to enhance the customer experience and stay competitive in the market. Moreover, there is a growing trend towards financial inclusion, with banks expanding their reach to underserved populations through agent banking and mobile money services.

Local special circumstances: Egypt's banking sector is influenced by unique local circumstances, such as a large unbanked population and a high reliance on cash transactions. As a result, banks in Egypt are focusing on financial literacy programs and initiatives to promote banking services among the unbanked population. Additionally, the regulatory environment plays a significant role in shaping the market, with the Central Bank of Egypt introducing reforms to promote financial stability, transparency, and consumer protection in the banking sector.

Underlying macroeconomic factors: The Traditional Retail Banking market in Egypt is also influenced by underlying macroeconomic factors such as economic growth, inflation, and interest rates. A stable economic environment and favorable interest rate policies can stimulate borrowing and investment activities, driving growth in the banking sector. Conversely, economic uncertainties and inflationary pressures can impact consumer spending and saving behaviors, influencing the demand for banking products and services in the market.

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.