Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Nordics

Nordics

In the Nordics, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, with a projected value of US$24.64bn in 2024.
Looking ahead, the market is expected to maintain a steady growth rate, with a compound annual growth rate (CAGR 2024-2029) of 3.63%.
This growth trajectory is likely to result in a market volume of US$29.45bn by 2029.
When compared on a global scale, it is noteworthy that China is expected to generate the highest Net Interest Income.
In 2024, China is projected to reach a staggering US$2,426.0bn in Net Interest Income.
In the Nordics, traditional retail banking is facing stiff competition from digital banking solutions, leading to a decline in branch usage.

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 Nordics is experiencing notable developments and trends shaping the industry.

Customer preferences: Customers in the Nordics are increasingly seeking convenience and efficiency in their banking services, leading to a growing demand for digital banking solutions. The preference for seamless online and mobile banking experiences has driven traditional retail banks in the region to invest heavily in digital transformation.

Trends in the market: In the Nordics, a key trend in the Traditional Retail Banking market is the emergence of innovative fintech startups offering specialized financial services. These disruptors are challenging traditional banks by providing more personalized and customer-centric solutions. Additionally, sustainability and ethical banking practices have gained importance among consumers in the Nordics, influencing the offerings and strategies of traditional retail banks in the region.

Local special circumstances: The Nordics have a unique banking landscape characterized by strong regulatory frameworks and high levels of digital adoption among the population. This environment has fostered a competitive market where traditional banks are pushed to differentiate themselves through innovative products and services. Moreover, the cultural emphasis on trust and transparency in financial dealings has shaped the way traditional retail banks operate in the region.

Underlying macroeconomic factors: The stable economic conditions in the Nordics have contributed to the growth of the Traditional Retail Banking market. With low levels of unemployment and a high standard of living, consumers in the region have the financial stability to engage with a variety of banking products and services. Additionally, the region's focus on technological advancement and sustainability aligns with the evolving priorities of traditional retail banks, driving further growth and development in the market.

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.