Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Kuwait

Kuwait

In Kuwait, the Traditional Retail Banking market market is expected to witness a substantial increase in Net Interest Income, reaching US$18.68bn by the year 2024.
This projection indicates a promising growth rate, with an anticipated annual compound annual growth rate (CAGR 2024-2029) of 4.07%.
Consequently, by 2029, the market volume is estimated to reach US$22.80bn.
When compared globally, it is worth noting that China will generate the highest Net Interest Income of US$2,426.0bn in 2024.
Kuwait's traditional retail banking sector is experiencing a surge in digital transformation to meet the rising demand for convenient and personalized 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

The Traditional Retail Banking market in Kuwait has been witnessing significant developments and trends in recent years.

Customer preferences: Customers in Kuwait are increasingly demanding more personalized and convenient banking services. They prefer seamless digital banking experiences, such as mobile banking apps and online account management. Additionally, there is a growing preference for traditional banks that offer a wide range of financial products and services under one roof.

Trends in the market: One of the key trends shaping the Traditional Retail Banking market in Kuwait is the adoption of innovative technologies. Banks are investing in digital transformation to enhance customer experience, streamline operations, and stay competitive in the market. Moreover, there is a trend towards offering Sharia-compliant banking products to cater to the Islamic banking segment in Kuwait.

Local special circumstances: Kuwait's Traditional Retail Banking market is unique due to its strong emphasis on Islamic banking principles. As a predominantly Muslim country, there is a high demand for Sharia-compliant financial products and services. This has led to the proliferation of Islamic banks and windows in Kuwait, offering a variety of Islamic banking solutions to meet the needs of the local population.

Underlying macroeconomic factors: The development of the Traditional Retail Banking market in Kuwait is also influenced by macroeconomic factors such as economic growth, regulatory environment, and government initiatives. The stability of the Kuwaiti economy, coupled with supportive regulatory frameworks, has created a conducive environment for the growth of the banking sector. Government initiatives to promote financial inclusion and digital innovation are further driving the evolution of the Traditional Retail Banking market in Kuwait.

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.