Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Western Africa

Western Africa

In Western Africa, the Traditional Retail Banking market market is expected to witness a significant growth in Net Interest Income.
By 2024, it is projected to reach an impressive US$54.01bn.
Looking ahead, the market is anticipated to maintain a steady growth rate, with a Compound Annual Growth Rate (CAGR) of -7.24% from 2024 to 2029.
This growth is expected to result in a market volume of US$37.10bn by 2029.
When comparing in Western Africa to the global market, it is worth noting that China is expected to generate the highest Net Interest Income.
In 2024, China is projected to record a staggering US$2,426.0bn in Net Interest Income.
This showcases the dominance of the US market in this sector.
In Western Africa, traditional retail banking is experiencing a decline due to the rise of mobile banking services.

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 Western Africa is experiencing significant growth and development driven by various factors.

Customer preferences: Customers in Western Africa are increasingly seeking convenience and accessibility in their banking services. With the rise of digitalization and technological advancements, there is a growing preference for online and mobile banking solutions. This shift in customer behavior is pushing traditional retail banks in the region to innovate and expand their digital offerings to meet the evolving needs of their clientele.

Trends in the market: In countries like Nigeria and Ghana, traditional retail banks are investing heavily in digital transformation initiatives to enhance customer experience and reach a wider audience. Mobile banking apps, online account opening, and digital payment solutions are becoming more prevalent as banks compete to attract and retain customers in the highly competitive market. Additionally, there is a trend towards offering personalized services and financial literacy programs to educate and empower customers to make informed decisions about their finances.

Local special circumstances: One of the key drivers of growth in the Traditional Retail Banking market in Western Africa is the large unbanked population in the region. Traditional banks are expanding their reach to underserved rural areas by leveraging technology and innovative banking models such as agency banking and mobile money services. This focus on financial inclusion is not only driving market growth but also contributing to socio-economic development by providing access to formal financial services for previously excluded populations.

Underlying macroeconomic factors: The economic stability and growth in Western Africa are also playing a significant role in the development of the Traditional Retail Banking market. As the region experiences steady economic growth and rising disposable incomes, there is an increasing demand for banking services and products. Traditional banks are capitalizing on this favorable economic environment to expand their operations, introduce new products, and improve overall service quality to cater to the growing customer base.

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.