Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Vietnam

Vietnam

In Vietnam, the Traditional Retail Banking market market is expected to witness a significant increase in Net Interest Income.
By 2024, the projected Net Interest Income in this market is estimated to reach US$6.12bn.
This indicates a positive growth trend in the country's banking sector.
Furthermore, the Net Interest Income in the Traditional Retail Banking market market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 4.54% from 2024 to 2029.
This steady growth is projected to result in a market volume of US$7.64bn by 2029.
This demonstrates the potential for further expansion and development within Vietnam's banking industry.
In a global context, it is worth noting that China is expected to generate the highest Net Interest Income.
In 2024, China is projected to generate a substantial amount of US$2,426.0bn.
This highlights the dominant position of the United States in the global banking market.
However, it is important to emphasize that these figures pertain specifically to the Traditional Retail Banking market sector and do not encompass the entirety of the banking industry in Vietnam.
In Vietnam, traditional retail banking is witnessing a shift towards digital channels as customers increasingly seek convenience and accessibility in their banking experience.

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 Vietnam has been experiencing significant growth and development in recent years, driven by various factors shaping the industry landscape.

Customer preferences: Customers in Vietnam are increasingly seeking convenient and accessible banking services, leading to a rise in demand for traditional retail banking products. With the growing middle class and increasing urbanization, there is a greater need for basic banking services such as savings accounts, personal loans, and mortgages.

Trends in the market: One of the key trends in the Traditional Retail Banking market in Vietnam is the expansion of branch networks by banks to reach a wider customer base, especially in rural areas. This trend is fueled by the government's efforts to promote financial inclusion and improve access to banking services across the country. Additionally, digital transformation is playing a crucial role in the market, with banks investing in online and mobile banking platforms to enhance customer experience and increase efficiency.

Local special circumstances: Vietnam has a young population with a high percentage of tech-savvy individuals, driving the adoption of digital banking services in the country. This demographic trend is influencing banks to focus on developing innovative digital solutions to cater to the preferences of the younger generation. Moreover, the Vietnamese government's initiatives to modernize the banking sector and promote cashless transactions are shaping the competitive landscape of the market.

Underlying macroeconomic factors: The stable economic growth and rising disposable income levels in Vietnam are contributing to the expansion of the Traditional Retail Banking market. As more people enter the middle-income bracket, there is a growing demand for banking products and services to meet their financial needs. Additionally, favorable government policies and regulatory reforms are creating a conducive environment for the growth of the banking sector in the country.

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.