Traditional Banks - Turkmenistan

Turkmenistan

In Turkmenistan, it is projected that the Net Interest Income in the market segment of Traditional Banks market will reach US$12.35bn in 2024.
Traditional Commercial Banking dominates this market with a projected market volume of US$6.80bn in the same year.
Looking ahead, the Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2028) of 5.72%, resulting in a market volume of US$15.43bn by 2028.
In a global perspective, the country generating the highest Net Interest Income in 2024 will be China, with a figure of US$3,869.0bn.
Turkmenistan's traditional banking market is facing challenges due to limited access to international financial systems and a lack of technological advancements.

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 Turkmenistan is experiencing notable developments.

Customer preferences: Customers in Turkmenistan are increasingly seeking traditional banking services due to a growing trust in established financial institutions. The preference for face-to-face interactions and personalized services offered by traditional banks is driving customers towards these institutions.

Trends in the market: One of the key trends in the Traditional Banks market in Turkmenistan is the adoption of digital banking services by traditional banks. While maintaining their physical presence, traditional banks are also investing in online and mobile banking platforms to cater to the changing preferences of tech-savvy customers. This trend is in line with global advancements in the banking sector, where digital transformation is becoming increasingly important.

Local special circumstances: Turkmenistan's banking sector is characterized by a relatively small number of traditional banks, which creates a unique competitive landscape. The limited number of players in the market allows traditional banks to focus on building strong relationships with customers and offering tailored financial solutions. Additionally, the government plays a significant role in regulating the banking sector, which impacts the operations and strategies of traditional banks in the country.

Underlying macroeconomic factors: The development of the Traditional Banks market in Turkmenistan is also influenced by macroeconomic factors such as economic stability and government policies. The government's initiatives to promote financial inclusion and stability in the banking sector are creating opportunities for traditional banks to expand their services and reach a wider customer base. Additionally, the overall economic growth of Turkmenistan is contributing to the increasing demand for banking services, further driving the growth of traditional banks 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.