Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Lebanon

Lebanon

In Lebanon, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income, reaching US$6.29bn by 2024.
This projection indicates a positive growth trend in the sector.
Furthermore, it is anticipated that the Net Interest Income will continue to expand at a compound annual growth rate (CAGR 2024-2029) of 4.02%.
By 2029, the market volume is estimated to reach US$7.66bn, reflecting the continued growth and potential of the Traditional Retail Banking market segment.
In comparison to other countries, China is projected to generate the highest Net Interest Income, with a staggering amount of US$2,426.0bn in 2024.
This highlights the dominance of the US market in terms of Net Interest Income generation within the Traditional Retail Banking market segment on a global scale.
In Lebanon, traditional retail banking is facing challenges due to the increasing popularity of digital banking platforms.

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

Lebanon's Traditional Retail Banking market is experiencing notable developments and shifts in customer preferences, trends, and local special circumstances.

Customer preferences: Customers in Lebanon are increasingly seeking convenience and efficiency in their banking experience. This has led to a growing demand for digital banking services, such as online banking, mobile banking apps, and contactless payment options. Moreover, customers are placing a higher emphasis on personalized services and tailored financial solutions to meet their individual needs and preferences.

Trends in the market: One prominent trend in Lebanon's Traditional Retail Banking market is the gradual transition towards digitalization and the adoption of fintech solutions. Traditional banks are investing in technology to enhance their service offerings and improve customer experience. Additionally, there is a rising trend of banks focusing on sustainability and ethical banking practices to appeal to socially conscious consumers. Another trend is the increasing competition in the market, leading banks to differentiate themselves through innovative products and services.

Local special circumstances: Lebanon's Traditional Retail Banking market faces unique challenges due to the country's economic and political instability. The banking sector has been impacted by currency devaluation, inflation, and capital controls, which have affected customer confidence and financial stability. These circumstances have forced banks to adapt their strategies and offerings to navigate the challenging operating environment while maintaining customer trust and satisfaction.

Underlying macroeconomic factors: The Traditional Retail Banking market in Lebanon is influenced by various macroeconomic factors, including the country's high public debt, low economic growth, and external pressures. The banking sector is closely tied to the overall economic performance of the country, making it susceptible to fluctuations in the macroeconomic environment. As Lebanon works towards economic recovery and stability, the Traditional Retail Banking market will continue to evolve in response to changing market dynamics and customer 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.