Traditional Banks - Tunisia

Tunisia

In Tunisia, the Traditional Banks market market is expected to witness a significant growth in Net Interest Income, reaching a projected value of US$2.25bn in 2024.
Traditional Commercial Banking, being the dominant sector, is projected to contribute to the market with a volume of US$1.62bn in the same year.
Looking ahead, the Net Interest Income is expected to experience an annual growth rate of 5.85% (CAGR 2024-2029), resulting in a market volume of US$2.99bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income of US$3,869.0bn in 2024.
Traditional banks in Tunisia are experiencing a decline in customer loyalty due to the rise of digital banking platforms.

Key regions: Germany, United Kingdom, France, Japan, China

Definition:

The Traditional Retail and Commercial Banks market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.
The traditional banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. These 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.
In this market, banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. However, they also face challenges, such as increased competition and changing customer preferences, which are driving the need for continuous improvement and adaptation.
Overall, the traditional retail and commercial banking market provides a wide range of financial services to both individuals and businesses through established, trusted channels and continues to play a vital role in the financial landscape.

Structure:

The market consists of two segments:
- The Traditional Retail Banks market refers to financial services provided to individual consumers (e.g., personal loans, savings and checking accounts, credit cards, mortgages).
- The Traditional Commercial Banks market refers to financial services provided to businesses, including small and large enterprises (loans, lines of credit, other financial products specifically designed for businesses).

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., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

The Traditional Banks market in Tunisia has been experiencing notable developments in recent years.

Customer preferences: Customers in Tunisia are increasingly seeking personalized and convenient banking services. They are looking for traditional banks that offer a wide range of products and services, including savings accounts, loans, and investment opportunities. Additionally, there is a growing demand for digital banking solutions that provide easy access to banking services anytime, anywhere.

Trends in the market: One of the notable trends in the Traditional Banks market in Tunisia is the adoption of digital banking technologies. Traditional banks are investing in online and mobile banking platforms to enhance customer experience and reach a larger customer base. Moreover, there is a trend towards offering more specialized financial products tailored to the needs of different customer segments, such as small businesses and young professionals.

Local special circumstances: In Tunisia, the Traditional Banks market is influenced by the country's regulatory environment and economic conditions. The government plays a significant role in shaping the banking sector through regulations and policies that aim to promote financial stability and inclusion. Additionally, the competition from non-traditional financial institutions, such as microfinance institutions and fintech companies, is also impacting the market dynamics.

Underlying macroeconomic factors: The development of the Traditional Banks market in Tunisia is closely linked to the overall economic growth and stability of the country. Factors such as GDP growth, inflation rates, and interest rates play a crucial role in shaping the demand for banking services and the profitability of traditional banks. Moreover, the political and social stability of Tunisia also influences investor confidence and the overall business environment for traditional banks.

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.