Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - United Arab Emirates

United Arab Emirates

In the United Arab Emirates, the Traditional Retail Banking market market is anticipated to achieve a Net Interest Income of US$19.95bn by the year 2024.
It is projected that the Net Interest Income will exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 3.81%, leading to a market volume of US$24.05bn by 2029.
When compared globally, China is expected to generate the highest Net Interest Income, amounting to US$2,426.0bn in 2024.
In the United Arab Emirates, traditional retail banking is facing increasing competition from digital banking platforms.

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 United Arab Emirates is witnessing significant developments and trends that are shaping the industry landscape.

Customer preferences: Customers in the UAE are increasingly seeking convenience and personalized services in their banking experience. This has led to a growing demand for digital banking solutions that offer seamless transactions and easy access to services. Additionally, customers are placing a higher emphasis on security and reliability when choosing their banking partners.

Trends in the market: One notable trend in the Traditional Retail Banking market in the UAE is the rapid adoption of digital banking channels. Banks are investing heavily in technology to enhance their digital offerings and provide customers with a more integrated and user-friendly experience. This shift towards digitalization is driven by the country's tech-savvy population and the government's push towards a digital economy. Another key trend is the increasing competition among traditional banks and digital-only banks. This competition is driving innovation in product offerings and services as banks strive to differentiate themselves in the market. As a result, customers are benefiting from a wider range of options and competitive pricing.

Local special circumstances: The UAE's unique demographic makeup, with a large expatriate population, presents special circumstances for the Traditional Retail Banking market. Banks in the UAE must cater to the diverse needs of both local citizens and expatriates, offering services that are tailored to different cultural and financial requirements. This diversity creates opportunities for banks to offer specialized products and services to different customer segments.

Underlying macroeconomic factors: The strong economic growth and stability in the UAE are contributing to the development of the Traditional Retail Banking market. As the economy continues to grow, the demand for banking services is expected to increase, driving further expansion and innovation in the market. Additionally, the government's focus on diversifying the economy and promoting financial inclusion is creating a favorable environment for the banking sector to thrive.

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.