Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - South America

South America

In South America, the Traditional Retail Banking market market is anticipated to witness a substantial growth in its Net Interest Income, reaching a projected value of US$102.20bn in 2024.
This growth is expected to continue with an annual growth rate (CAGR 2024-2029) of 1.24%, ultimately leading to a market volume of US$108.70bn by 2029.
When compared globally, it is worth noting that in China will generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
In South America, traditional retail banking is facing increased competition from digital banks, forcing established banks to innovate and enhance their digital offerings to retain customers.

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

Over the past few years, the Traditional Retail Banking market in South America has been experiencing significant growth and transformation.

Customer preferences: Customers in South America are increasingly seeking more personalized and convenient banking services. They are looking for seamless digital banking experiences, including online and mobile banking options. Additionally, there is a growing demand for financial products that offer competitive interest rates and low fees.

Trends in the market: In Brazil, one of the largest economies in South America, there has been a noticeable shift towards digital banking. Traditional banks are investing heavily in digital infrastructure to meet the evolving needs of customers. Moreover, there is a rise in partnerships between traditional banks and fintech companies to offer innovative solutions such as digital wallets and peer-to-peer payments.

Local special circumstances: In Argentina, economic instability has influenced the Traditional Retail Banking market. Banks are focusing on providing stability and security to customers amidst economic uncertainties. This has led to the introduction of new savings and investment products with attractive interest rates to attract and retain customers.

Underlying macroeconomic factors: The overall economic growth in South America, coupled with increasing internet penetration and smartphone adoption, has been driving the growth of digital banking services. Furthermore, regulatory reforms in countries like Colombia and Peru have opened up the market for more competition, leading to better services and products for 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.