Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Western Asia

Western Asia

In Western Asia, the Traditional Retail Banking market market is anticipated to witness a significant surge in Net Interest Income, with projections indicating a staggering figure of US$180.50bn by 2024.
Furthermore, this segment is expected to demonstrate a steady growth rate of 2.41% per annum from 2024 to 2029, culminating in a market volume of US$203.30bn by the end of the forecast period.
When evaluating the global landscape, it is worth noting that China is anticipated to generate the highest Net Interest Income, reaching an impressive US$2,426.0bn in 2024.
In Western Asia, traditional retail banking is experiencing a decline due to the rise of 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 Western Asia is witnessing significant developments and trends that are shaping the industry in the region.

Customer preferences: Customers in Western Asia are increasingly demanding more personalized and convenient banking services, leading traditional retail banks to enhance their digital offerings. The shift towards online and mobile banking is being driven by the tech-savvy population in the region who value efficiency and accessibility in their banking experience.

Trends in the market: In countries like Saudi Arabia and the United Arab Emirates, traditional retail banks are investing heavily in digital transformation to meet the growing demand for online services. This includes the development of mobile banking apps, digital payment solutions, and AI-powered customer service tools. Additionally, there is a trend towards creating more customer-centric banking experiences through the use of data analytics and personalized marketing strategies.

Local special circumstances: Western Asia is home to a diverse population with varying levels of financial literacy and access to banking services. In countries like Iran and Iraq, where banking penetration is relatively low, traditional retail banks are focusing on expanding their branch networks to reach underserved communities. On the other hand, in more developed markets like Qatar and Kuwait, banks are concentrating on enhancing their digital capabilities to cater to the preferences of tech-savvy consumers.

Underlying macroeconomic factors: The economic landscape in Western Asia is also influencing the development of the traditional retail banking market. Factors such as fluctuating oil prices, government regulations, and geopolitical tensions play a significant role in shaping the industry. Traditional retail banks in the region are adapting their strategies to navigate these macroeconomic challenges and capitalize on emerging opportunities for growth and expansion.

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.