Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Serbia

Serbia

In Serbia, the Traditional Retail Banking market market is anticipated to witness a significant increase in Net Interest Income, with a projected value of US$1.79bn in 2024.
This growth is expected to continue at a compound annual growth rate (CAGR 2024-2029) of 0.99%, leading to a market volume of US$1.88bn by 2029.
When compared to other countries worldwide, it is important to note that China is expected to generate the highest Net Interest Income in 2024, reaching a staggering US$2,426.0bn.
Serbia's traditional retail banking market is witnessing a shift towards digitalization, with banks investing in technology to enhance customer experience and streamline operations.

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 Serbia is experiencing a shift in customer preferences towards digital banking solutions, mirroring global trends in the industry.

Customer preferences: Customers in Serbia are increasingly seeking convenience and efficiency in their banking experience, leading to a growing demand for online and mobile banking services. This shift is driven by the need for 24/7 access to banking services, as well as the convenience of conducting transactions remotely. As a result, traditional brick-and-mortar bank branches are seeing a decline in foot traffic, with more customers opting for digital channels for their banking needs.

Trends in the market: One of the prominent trends in the Traditional Retail Banking market in Serbia is the proliferation of digital-only banks and fintech companies offering innovative solutions to attract tech-savvy customers. These new entrants are disrupting the market by providing seamless digital experiences, personalized services, and competitive pricing, forcing traditional banks to enhance their digital offerings to stay competitive. Moreover, the adoption of open banking initiatives is gaining traction in Serbia, enabling customers to access a wider range of financial products and services from multiple providers through interconnected digital platforms.

Local special circumstances: In Serbia, the Traditional Retail Banking market is also influenced by unique local factors such as the regulatory environment, economic conditions, and cultural preferences. The regulatory framework in the country plays a crucial role in shaping the competitive landscape and driving innovation in the banking sector. Additionally, the economic landscape and consumer behavior in Serbia impact the demand for banking products and services, with affordability and accessibility being key considerations for customers. Cultural factors such as trust in traditional banking institutions and attitudes towards technology adoption also influence the market dynamics in the country.

Underlying macroeconomic factors: The development of the Traditional Retail Banking market in Serbia is further influenced by underlying macroeconomic factors such as GDP growth, inflation rates, and employment levels. Economic stability and growth contribute to increased consumer confidence and spending power, driving demand for banking services. Moreover, fluctuations in interest rates and foreign exchange rates impact the profitability and competitiveness of banks in Serbia, shaping their strategies and product offerings in response to market conditions.

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.