Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Hungary

Hungary

In Hungary, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching US$3.71bn in 2024.
This growth is projected to continue with an annual growth rate (CAGR 2024-2029) of 3.42%, leading to a market volume of US$4.39bn by 2029.
It is worth noting that in comparison to other countries, China is anticipated to generate the highest Net Interest Income in 2024, amounting to US$2,426.0bn.
In Hungary, traditional retail banking is experiencing a decline in popularity as customers increasingly opt for digital banking 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

Hungary's Traditional Retail Banking market is experiencing notable developments and trends driven by various factors influencing customer behavior and market dynamics.

Customer preferences: Customers in Hungary are increasingly seeking convenience and personalized services in their banking experience. This shift is pushing traditional retail banks to enhance their digital offerings, such as online banking platforms and mobile applications, to cater to the growing demand for seamless and efficient banking services. Moreover, customers are placing greater emphasis on data security and privacy, prompting banks to invest in robust cybersecurity measures to build trust and loyalty among their customer base.

Trends in the market: One prominent trend in Hungary's Traditional Retail Banking market is the rising popularity of digital banking channels. As customers become more tech-savvy and accustomed to conducting financial transactions online, traditional banks are expanding their digital capabilities to meet evolving customer expectations. This trend is driving innovation in the sector, with banks introducing new digital tools and services to improve the overall banking experience for customers. Additionally, the growing competition from digital-only banks and fintech companies is prompting traditional banks to rethink their strategies and offerings to stay competitive in the market.

Local special circumstances: Hungary's Traditional Retail Banking market is also influenced by unique local circumstances, such as regulatory changes and government initiatives aimed at promoting financial inclusion and innovation in the banking sector. The government's push for greater financial transparency and consumer protection is shaping the way traditional banks operate and interact with customers. Additionally, cultural factors and preferences play a role in shaping the market, with Hungarian customers valuing personalized relationships with their banks and expecting a high level of customer service.

Underlying macroeconomic factors: The development of Hungary's Traditional Retail Banking market is further influenced by macroeconomic factors such as economic growth, interest rates, and regulatory environment. As the country's economy continues to grow, there is an increasing demand for banking services to support business expansion and personal financial needs. Moreover, changes in interest rates and regulatory policies impact banks' lending practices and profitability, shaping the overall landscape of the market. Adapting to these macroeconomic factors is essential for traditional retail banks to thrive and remain competitive in Hungary's evolving banking sector.

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.