Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Iraq

Iraq

In Iraq, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, projected to reach US$5.73bn by the year 2024.
Furthermore, it is expected that this sector will experience a steady annual growth rate (CAGR 2024-2029) of 0.07%, leading to a market volume of US$5.75bn by 2029.
When compared globally, it is worth noting that China will generate the highest Net Interest Income, estimated to be US$2,426.0bn in 2024.
Despite ongoing political and security challenges, Iraq's traditional retail banking sector is experiencing steady growth due to increasing demand for banking services among the population.

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 Iraq is experiencing significant growth and evolution in response to changing customer preferences and local special circumstances.

Customer preferences: Customers in Iraq are increasingly seeking convenient and accessible banking services. With the rise of digitalization and technological advancements, there is a growing demand for online and mobile banking options. This shift in preferences is driving traditional retail banks in Iraq to invest in digital infrastructure and enhance their technological capabilities to meet customer needs.

Trends in the market: One prominent trend in the Traditional Retail Banking market in Iraq is the expansion of branch networks. Despite the digitalization trend, many customers still value in-person interactions and prefer to visit physical bank branches for certain transactions. As a result, traditional retail banks are strategically expanding their branch presence to reach a wider customer base and provide personalized services.

Local special circumstances: Iraq's banking sector has been undergoing reforms to improve transparency, governance, and regulatory frameworks. These changes are aimed at enhancing the overall stability and efficiency of the banking system in the country. Additionally, the geopolitical situation in Iraq plays a significant role in shaping the Traditional Retail Banking market, as banks navigate challenges related to security concerns and economic stability.

Underlying macroeconomic factors: The growth of the Traditional Retail Banking market in Iraq is also influenced by macroeconomic factors such as GDP growth, inflation rates, and government policies. As the economy continues to stabilize and diversify, there is a positive outlook for the banking sector. Moreover, initiatives to promote financial inclusion and literacy are driving more individuals and businesses to engage with traditional retail banks for their financial 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.