Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - MENA

MENA

Net Interest Income in the Traditional Retail Banking market is projected to reach US$223.60bn in 2024.
Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of 2.65%, resulting in a market volume of US$254.80bn by 2029.
In global comparison, most Net Interest Income will be generated in China (US$2,426.0bn in 2024).

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 MENA is experiencing notable shifts and developments in response to changing customer preferences and local special circumstances.

Customer preferences: Customers in the MENA region are increasingly seeking convenience, personalized services, and digital banking solutions. The demand for seamless online and mobile banking experiences is on the rise as customers look for efficient ways to manage their finances. Additionally, there is a growing preference for banks that offer a wide range of products and services, including savings accounts, loans, and investment opportunities.

Trends in the market: In countries like Saudi Arabia, the Traditional Retail Banking market is witnessing a surge in digital transformation initiatives. Banks are investing in advanced technologies such as artificial intelligence and blockchain to enhance customer experience and streamline operations. Moreover, there is a growing trend towards sustainable banking practices, with a focus on environmental and social responsibility.

Local special circumstances: In the United Arab Emirates, the Traditional Retail Banking market is influenced by the presence of a large expatriate population. Banks in the region are tailoring their services to cater to the unique needs of expats, such as cross-border banking solutions and multi-currency accounts. Additionally, the UAE's status as a global financial hub has led to increased competition among banks, driving innovation and service differentiation.

Underlying macroeconomic factors: Economic diversification efforts in countries like Qatar are impacting the Traditional Retail Banking market. As these economies reduce their reliance on oil revenues, banks are adapting their strategies to support the growth of non-oil sectors. This shift is driving demand for specialized banking services tailored to industries such as tourism, healthcare, and technology. Additionally, regulatory reforms aimed at enhancing transparency and customer protection are shaping the market landscape across the MENA region.

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.