Traditional Banks - Turkey

Turkey

In Turkey, the net interest income in the market segment of Traditional Banks market is expected to reach US$11.21bn in 2024.
Traditional Retail Banking dominates the market in Turkey with a projected market volume of US$7.98bn in 2024.
Looking ahead, the net interest income is expected to grow at an annual growth rate (CAGR 2024-2029) of -1.95%, resulting in a market volume of US$10.16bn by 2029.
When it comes to global comparison, in China is anticipated to generate the highest net interest income, which is projected to be US$3,869.0bn in 2024.
Traditional banks in Turkey are facing increasing competition from digital banking platforms, forcing them to innovate and adapt to changing consumer preferences.

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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Currency

Analyst Opinion

The Traditional Banks market in Turkey has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Turkey tend to favor traditional banking services provided by brick-and-mortar banks due to a strong cultural emphasis on personal relationships and face-to-face interactions with financial institutions.

Trends in the market: One noticeable trend in the Traditional Banks market in Turkey is the increasing adoption of digital banking services by traditional banks to cater to the tech-savvy younger population while still maintaining their physical branch presence to serve older customers who prefer traditional banking methods.

Local special circumstances: Turkey's geographical location as a bridge between Europe and Asia has positioned it as a key player in the financial sector, attracting both domestic and foreign investments in the Traditional Banks market. Additionally, the government's initiatives to promote financial inclusion and stability have further fueled the growth of traditional banks in the country.

Underlying macroeconomic factors: The stable economic growth and increasing disposable income in Turkey have contributed to the expansion of the Traditional Banks market as more individuals and businesses seek access to financial services for savings, investments, and loans. Moreover, the regulatory environment in Turkey has been conducive to the growth of traditional banks, providing a stable and secure operating environment for financial institutions 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.