Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Finland

Finland

In Finland, the projected Net Interest Income in the Traditional Retail Banking market market for 2024 is estimated to be US$3.20bn.
Looking ahead, it is expected to experience a compound annual growth rate (CAGR 2024-2029) of 0.19%, leading to a market volume of US$3.23bn by 2029.
When compared globally, China is anticipated to generate the highest amount of Net Interest Income in 2024, reaching US$2,426.0bn.
Finland's traditional retail banking sector is experiencing a shift towards digitalization, as consumers increasingly embrace online banking services and mobile payment solutions.

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

Traditional Retail Banking in Finland is experiencing a shift in customer preferences, market trends, and local special circumstances that are shaping its development.

Customer preferences: Customers in Finland are increasingly seeking convenient and personalized banking services, driving the demand for digital solutions and self-service options. The preference for seamless online banking experiences and mobile applications is reshaping the way traditional banks interact with their customers. Additionally, there is a growing interest in sustainable and ethical banking practices among Finnish consumers, influencing their choice of financial institutions.

Trends in the market: In Finland, the Traditional Retail Banking market is witnessing a surge in competition from digital banks and fintech companies. This trend is fueled by the tech-savvy population in the country and their willingness to adopt innovative financial solutions. As a result, traditional banks are under pressure to enhance their digital offerings, improve operational efficiency, and provide more personalized services to retain and attract customers. Moreover, the increasing focus on cybersecurity and data privacy is driving investments in advanced technologies to secure customer information and transactions.

Local special circumstances: Finland's unique market dynamics, characterized by a small population and a high level of digital literacy, are contributing to the rapid evolution of the Traditional Retail Banking sector. The country's strong regulatory environment and commitment to financial stability also play a crucial role in shaping the market landscape. Furthermore, the cultural emphasis on trust, transparency, and reliability in financial services is influencing the way banks operate and communicate with their customers in Finland.

Underlying macroeconomic factors: The macroeconomic factors influencing the Traditional Retail Banking market in Finland include the overall economic growth, interest rates, and demographic changes. As the economy continues to recover and interest rates remain low, banks are facing margin pressures and are exploring new revenue streams. Demographic shifts, such as an aging population and changing consumer behaviors, are also impacting the demand for banking products and services, prompting banks to adapt their strategies to cater to evolving customer needs.

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.