Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Portugal

Portugal

In Portugal, the Traditional Retail Banking market market is forecasted to achieve a Net Interest Income of US$1.56bn by the year 2024.
It is anticipated that this figure will experience a compound annual growth rate (CAGR 2024-2029) of -8.15%, leading to a market volume of US$1.02bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, reaching US$2,426.0bn in 2024.
Portugal's traditional retail banking market is experiencing a shift towards digitalization and online banking services.

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 vibrant streets of Lisbon and the picturesque landscapes of Porto, the Traditional Retail Banking market in Portugal is undergoing notable developments.

Customer preferences: Portuguese customers are increasingly gravitating towards digital banking solutions, seeking convenience and efficiency in their financial transactions. The younger demographic, in particular, is more inclined towards online and mobile banking options, driving the need for traditional banks to enhance their digital offerings to cater to evolving customer preferences.

Trends in the market: One prominent trend in the Traditional Retail Banking market in Portugal is the rise of neobanks and fintech companies. These agile and innovative players are disrupting the market by offering tailored services, competitive interest rates, and seamless digital experiences. As a result, traditional banks are facing pressure to adapt and modernize their operations to stay competitive in the evolving landscape.

Local special circumstances: Portugal's banking sector has been significantly impacted by the aftermath of the global financial crisis, leading to increased regulatory scrutiny and a focus on risk management practices. This unique local circumstance has influenced the way traditional banks operate, emphasizing stability, transparency, and customer trust in their service offerings.

Underlying macroeconomic factors: The economic landscape in Portugal, characterized by fluctuating interest rates and evolving consumer behavior, plays a crucial role in shaping the Traditional Retail Banking market. As the country strives for economic recovery and stability, traditional banks are navigating challenges such as low interest margins and increasing competition, driving them to explore new strategies to sustain growth and profitability 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.