Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - New Zealand

New Zealand

In New Zealand, the net interest income in the Traditional Retail Banking market market is forecasted to reach US$2.47bn in 2024.
It is also anticipated that the net interest income will exhibit an annual growth rate of -1.94% (CAGR 2024-2029), leading to a market volume of US$2.24bn by 2029.
When compared globally, China is projected to generate the highest net interest income of US$2,426.0bn in 2024.
In New Zealand, traditional retail banking is experiencing a shift towards digital banking services, with an increasing number of customers opting for online and mobile banking solutions.

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

In New Zealand, the Traditional Retail Banking market is experiencing notable trends and developments.

Customer preferences: Customers in New Zealand are increasingly leaning towards digital banking solutions, driven by convenience, ease of access, and the growing trend of online transactions. This shift in preference is in line with global patterns where consumers are opting for more efficient and technology-driven banking services.

Trends in the market: One of the prominent trends in the Traditional Retail Banking market in New Zealand is the rise of challenger banks and fintech companies. These new entrants are disrupting the market with innovative products, competitive interest rates, and personalized customer experiences. As a result, traditional banks are under pressure to enhance their offerings and improve customer engagement to stay competitive.

Local special circumstances: New Zealand's unique geographical landscape, with a dispersed population across islands, has contributed to the rapid adoption of online and mobile banking services. The need for accessible banking solutions for customers in remote areas has pushed traditional banks to invest in digital infrastructure and mobile banking capabilities. Moreover, the country's strong focus on sustainability and ethical banking practices has influenced customer preferences, prompting banks to align their services with these values.

Underlying macroeconomic factors: The stable economic environment in New Zealand, coupled with low interest rates, has encouraged borrowing and lending activities in the Traditional Retail Banking sector. This has led to increased competition among banks to attract customers with competitive loan terms and savings rates. Additionally, the government's initiatives to promote financial inclusion and literacy have shaped the banking landscape, driving banks to offer more inclusive and accessible services to cater to a diverse customer base.

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.