Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Iran

Iran

In Iran, the Traditional Retail Banking market market is expected to witness a significant growth in Net Interest Income.
By 2024, the projected Net Interest Income is estimated to reach US$75.88bn.
This growth is expected to continue with an annual growth rate (CAGR 2024-2029) of 0.71%, resulting in a market volume of US$78.60bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income in 2024, with a staggering amount of US$2,426.0bn.
Traditional retail banking in Iran is experiencing a shift towards digital channels, with an increasing number of customers opting for online and mobile 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

Amidst a growing economy and increasing digitalization, the Traditional Retail Banking market in Iran is experiencing significant transformations and developments.

Customer preferences: Customers in Iran are increasingly leaning towards digital banking solutions, driven by convenience, accessibility, and the growing tech-savvy population. However, traditional banking services still hold value for many customers who prefer in-person interactions and personalized services.

Trends in the market: One prominent trend in the Traditional Retail Banking market in Iran is the expansion of digital banking services offered by traditional banks to meet the evolving needs of customers. This trend is fueled by the rising adoption of smartphones and the internet, making online banking a preferred choice for many consumers. Additionally, banks are focusing on enhancing their digital platforms to provide a seamless and secure banking experience.

Local special circumstances: Iran's banking sector operates under unique circumstances due to international sanctions, which have limited foreign investment and access to global banking systems. As a result, traditional banks in Iran have had to innovate and develop domestic solutions to cater to the needs of the population. This has led to the rise of localized banking services tailored to the Iranian market.

Underlying macroeconomic factors: The Traditional Retail Banking market in Iran is also influenced by macroeconomic factors such as inflation, interest rates, and government policies. Economic stability and regulatory changes play a crucial role in shaping the banking landscape and consumer behavior. As the Iranian economy continues to evolve, traditional banks will need to adapt their strategies to remain competitive and meet the changing demands of customers.

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.