Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Jordan

Jordan

In Jordan, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching US$1.99bn by 2024.
This projection indicates a positive trend in the financial sector.
Furthermore, it is anticipated that the Net Interest Income will continue to grow steadily with an annual growth rate (CAGR 2024-2029) of 4.16%, resulting in a market volume of US$2.44bn by 2029.
However, when compared on a global scale, it is noteworthy that China will generate the highest Net Interest Income, with an estimated value of US$2,426.0bn in 2024.
This demonstrates the dominant position of the United States in the global banking industry.
As the global banking industry continues to digitize, traditional retail banking in Jordan is adapting by enhancing online and mobile banking services to meet the evolving needs of 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 Jordan is experiencing significant growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Jordan are increasingly seeking convenience, personalized services, and digital banking solutions. The younger population, in particular, is more inclined towards tech-savvy and efficient banking options. This shift in preferences is pushing traditional retail banks in Jordan to innovate and enhance their digital offerings to meet customer expectations and stay competitive in the market.

Trends in the market: One notable trend in the Traditional Retail Banking market in Jordan is the rise of mobile banking and online services. With the increasing penetration of smartphones and internet connectivity in the country, more customers are opting for digital channels to conduct their banking activities. This trend is driving traditional banks to invest in digital infrastructure, develop user-friendly mobile applications, and expand their online service capabilities to cater to the growing demand for digital banking solutions.

Local special circumstances: Jordan's banking sector is characterized by a high level of competition among traditional retail banks. This competitive landscape is prompting banks to differentiate themselves by offering unique products and services, improving customer experience, and implementing innovative marketing strategies. Additionally, the regulatory environment in Jordan plays a crucial role in shaping the operations and growth of traditional retail banks, influencing their strategies and market positioning.

Underlying macroeconomic factors: The macroeconomic environment in Jordan, including factors such as economic growth, inflation rates, and interest rates, has a direct impact on the Traditional Retail Banking market. Stable economic conditions and favorable interest rate policies can stimulate borrowing and spending, leading to increased demand for banking products and services. On the other hand, economic uncertainties or fluctuations may affect consumer confidence and investment decisions, influencing the overall performance of traditional retail banks in the country.

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.