Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Uganda

Uganda

In Uganda, the Traditional Retail Banking market market is anticipated to achieve a Net Interest Income of US$188.30m in 2024.
This figure is projected to experience an annual growth rate of -2.43% (CAGR 2024-2029), leading to a market volume of US$166.50m by 2029.
When comparing globally, China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
Uganda's traditional retail banking market is experiencing a shift towards digital banking services to cater to the growing demand for convenience and accessibility.

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

In Uganda, the Traditional Retail Banking market is experiencing significant growth and evolution driven by various factors.

Customer preferences: Customers in Uganda are increasingly gravitating towards traditional retail banking services due to the convenience and accessibility they offer. With a growing middle class and increasing urbanization, more individuals are seeking basic banking services such as savings accounts, loans, and money transfer facilities provided by traditional banks.

Trends in the market: One notable trend in the Ugandan Traditional Retail Banking market is the expansion of branch networks by major banks to reach underserved rural areas. This trend is fueled by the government's financial inclusion initiatives and the rising demand for banking services in remote regions. Additionally, there is a growing emphasis on digital banking solutions to cater to the tech-savvy population, leading to the development of mobile banking apps and online platforms.

Local special circumstances: In Uganda, the Traditional Retail Banking market is influenced by the unique local circumstances, including the prevalence of informal financial services in rural areas. Traditional banks are adapting their strategies to compete with informal savings groups and microfinance institutions by offering tailored products and financial education to attract unbanked populations. Moreover, the regulatory environment plays a crucial role in shaping the market dynamics, with stringent requirements aimed at enhancing stability and consumer protection.

Underlying macroeconomic factors: The development of the Traditional Retail Banking market in Uganda is also driven by macroeconomic factors such as GDP growth, inflation rates, and foreign direct investment. A stable economic environment and favorable government policies contribute to the overall growth of the banking sector, encouraging investment and fostering competition among financial institutions. Additionally, the increasing integration of Uganda into the global economy through trade and investment partnerships creates opportunities for banks to expand their services and attract foreign 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.