Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Panama

Panama

In Panama, the Traditional Retail Banking market market is anticipated to witness a substantial increase in Net Interest Income, with projections indicating a figure of US$0.92bn by 2024.
This growth is expected to continue at a steady pace, with a calculated annual growth rate (CAGR 2024-2029) of 4.01%.
As a result, it is estimated that the market volume will reach US$1.12bn by 2029.
When compared globally, it is noteworthy that China is expected to generate the highest Net Interest Income, with an estimated amount of US$2,426.0bn in 2024.
Panama's traditional retail banking market is experiencing a shift towards digital banking services, as customers increasingly embrace online and mobile platforms for their banking needs.

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the vibrant economic landscape of Panama, the Traditional Retail Banking market is experiencing notable developments and trends that are shaping the industry.

Customer preferences: In Panama, customers are increasingly seeking personalized and convenient banking services. This shift in preferences is driving traditional banks to enhance their digital offerings and customer service to cater to the evolving needs of the tech-savvy population. Additionally, there is a growing demand for seamless integration between online and offline banking channels to provide a holistic banking experience.

Trends in the market: One of the prominent trends in the Traditional Retail Banking market in Panama is the rise of neobanks and fintech companies. These innovative players are disrupting the market by offering agile and customer-centric solutions that appeal to the younger demographics. Traditional banks are now facing the challenge of adapting to this changing landscape by investing in technology and digital transformation to stay competitive.

Local special circumstances: Panama's unique position as a regional financial hub and its dollarized economy contribute to the distinctive dynamics of the Traditional Retail Banking market. The presence of international banks and a diverse expatriate population further enriches the banking sector, creating opportunities for collaboration and innovation. Moreover, Panama's stable regulatory environment fosters trust and confidence among both customers and financial institutions.

Underlying macroeconomic factors: The steady economic growth, increasing financial inclusion, and government initiatives to promote digitalization are key macroeconomic factors driving the development of the Traditional Retail Banking market in Panama. As the country continues to attract foreign investment and expand its digital infrastructure, traditional banks are leveraging these opportunities to expand their market presence and enhance their service offerings to meet the evolving needs of customers.

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.