Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Kazakhstan

Kazakhstan

In Kazakhstan, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, projected to reach US$3.32bn by 2024.
Moreover, this sector is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 1.69%, leading to a market volume of US$3.61bn by 2029.
When compared on a global scale, China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
Traditional retail banking in Kazakhstan is experiencing a shift towards digital channels and mobile banking, with customers increasingly opting for convenient and accessible 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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Retail Banking market in Kazakhstan is experiencing notable shifts and developments in response to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Kazakhstan are increasingly seeking convenience, personalized services, and digital solutions in their banking experiences. This shift is driving traditional retail banks to enhance their online and mobile banking offerings, streamline processes, and provide tailored financial products to meet the evolving needs of consumers.

Trends in the market: One prominent trend in the Kazakhstani Traditional Retail Banking market is the growing adoption of digital banking solutions. With the rise of smartphone usage and internet penetration in the country, customers are increasingly turning to online platforms for their banking needs. This trend is pushing banks to invest in digital transformation, such as developing user-friendly mobile applications and expanding online service capabilities. Moreover, there is a noticeable trend towards financial inclusion in Kazakhstan, with banks focusing on reaching unbanked populations and offering accessible banking services to previously underserved areas. This initiative not only supports financial literacy and inclusion but also opens up new market opportunities for traditional retail banks in the country.

Local special circumstances: Kazakhstan's unique geographical and demographic landscape plays a significant role in shaping the Traditional Retail Banking market. The country's vast territory and dispersed population present challenges in terms of physical branch accessibility, making digital banking solutions more appealing to customers across different regions. Additionally, the cultural emphasis on personal relationships in business transactions influences how traditional retail banks engage with customers and build trust in the market.

Underlying macroeconomic factors: The economic stability and growth in Kazakhstan contribute to the development of the Traditional Retail Banking market. As the economy expands, there is a corresponding increase in disposable income and savings rates among the population, leading to higher demand for banking services. Additionally, regulatory reforms and government initiatives to modernize the financial sector create a favorable environment for traditional retail banks to innovate and expand their market presence in Kazakhstan.

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.