Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Northern Africa

Northern Africa

In Northern Africa, the Traditional Retail Banking market market is expected to see its Net Interest Income reach US$35.18bn by the year 2024.
Looking ahead, the sector is projected to experience an annual growth rate of 4.91% between 2024 and 2029, culminating in a market volume of US$44.71bn by the end of the latter year.
When compared to other countries worldwide, it is worth noting that China is set to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
In Northern Africa, traditional retail banking is experiencing a decline due to the rise 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

The Traditional Retail Banking market in Northern Africa is experiencing significant developments driven by changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Northern Africa are increasingly seeking convenience, personalized services, and digital banking solutions. With the rise of tech-savvy consumers, there is a growing demand for online and mobile banking options that offer flexibility and accessibility. Additionally, customers value transparency, competitive interest rates, and efficient customer service in their banking relationships.

Trends in the market: In countries like Egypt and Morocco, traditional retail banks are adapting to the digital era by investing in innovative technologies such as artificial intelligence, data analytics, and mobile payment solutions. This shift towards digital transformation is aimed at enhancing customer experience, streamlining operations, and reaching unbanked populations in remote areas. Furthermore, there is a trend towards partnerships between banks and fintech companies to offer a wider range of financial products and services.

Local special circumstances: Northern Africa presents unique challenges and opportunities for traditional retail banks. Political stability, regulatory frameworks, and infrastructure development play crucial roles in shaping the banking landscape. For example, countries like Libya and Sudan face political uncertainties that impact the banking sector, while countries with stable economies like Tunisia and Algeria attract foreign investments in the banking industry. Moreover, cultural preferences and religious beliefs influence banking practices, such as the demand for Sharia-compliant banking products in predominantly Muslim regions.

Underlying macroeconomic factors: The Traditional Retail Banking market in Northern Africa is influenced by macroeconomic factors such as GDP growth, inflation rates, and foreign direct investments. Economic stability and growth stimulate banking activities, increase loan demand, and encourage savings. Fluctuations in currency exchange rates, global trade dynamics, and regional economic integration efforts also impact the profitability and competitiveness of traditional retail banks in the region. Additionally, government policies, central bank regulations, and financial inclusion initiatives shape the operating environment for banks in Northern Africa.

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.