Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Peru

Peru

In Peru, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income.
By 2024, it is projected to reach US$8.38bn.
This growth is anticipated to continue at an annual growth rate of 1.88% (CAGR 2024-2029), resulting in a market volume of US$9.20bn by 2029.
When compared to other countries globally, China is forecasted to generate the highest Net Interest Income in 2024, amounting to US$2,426.0bn.
Peruvian traditional retail banking is experiencing a shift towards digitalization, as more customers seek convenience and access to financial services through online and mobile channels.

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

Amidst the dynamic landscape of the Traditional Retail Banking market in Peru, several key trends and developments have emerged that shape the industry's trajectory.

Customer preferences: Peruvian consumers are increasingly inclined towards digital banking solutions, driven by the convenience and accessibility they offer. Mobile banking services are gaining popularity as customers seek seamless and on-the-go banking experiences. Moreover, there is a growing demand for personalized services and tailored financial products that cater to individual needs and preferences.

Trends in the market: One notable trend in the Peruvian Traditional Retail Banking market is the expansion of banking services to underserved regions and populations. Financial inclusion efforts are on the rise, with banks reaching out to unbanked communities through innovative strategies and partnerships. Additionally, there is a noticeable shift towards sustainable and socially responsible banking practices, reflecting a broader global trend towards ethical finance.

Local special circumstances: Peru's unique geographical landscape, characterized by diverse terrains and remote areas, presents challenges for traditional banking operations. In response, banks are leveraging technology to overcome these barriers and extend their services to previously unreachable areas. Furthermore, the cultural emphasis on personal relationships in business transactions influences the banking sector, with a premium placed on trust and loyalty in customer-bank interactions.

Underlying macroeconomic factors: The macroeconomic environment in Peru, including factors such as GDP growth, inflation rates, and regulatory policies, plays a significant role in shaping the Traditional Retail Banking market. Economic stability and regulatory reforms impact consumer confidence and spending habits, influencing the demand for banking services. Moreover, currency fluctuations and interest rates affect borrowing and lending activities, impacting the overall profitability and competitiveness of banks 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.