Banking - Turkmenistan

Turkmenistan

In Turkmenistan, the Banking market is anticipated to witness a significant increase in Net Interest Income, projected to reach US$12.35bn in 2024.
Traditional Banks are expected to dominate this market segment with a projected market volume of US$12.35bn in the same year.
Looking ahead, Net Interest Income is forecasted to exhibit an annual growth rate (CAGR 2024-2028) of 5.72%, leading to a market volume of US$15.43bn by 2028.
When compared on a global scale, it is noteworthy that China will generate the highest Net Interest Income, amounting to US$4,332.0bn in 2024.
The banking sector in Turkmenistan is experiencing a surge in digital banking services, with an increasing number of customers opting for online transactions and mobile banking.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. 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.

Structure:

The market consists of two segments:
- The Traditional Banking 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.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises 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.

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 & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

Turkmenistan, a country with a predominantly cash-based economy, has been experiencing a gradual shift towards digital banking services in recent years.

Customer preferences: Customers in Turkmenistan are increasingly showing a preference for digital banking services due to the convenience and accessibility they offer. With the rise of smartphone usage and internet penetration in the country, consumers are looking for more efficient ways to manage their finances.

Trends in the market: One of the notable trends in the banking market in Turkmenistan is the expansion of mobile banking services. Banks in the country are investing in mobile apps and online platforms to cater to the growing demand for digital banking solutions. This trend is in line with global developments where mobile banking is becoming the norm for many consumers.

Local special circumstances: Turkmenistan's banking sector is characterized by a high level of government involvement and regulation. The government plays a significant role in shaping the banking market, which can impact the competitiveness and innovation within the sector. Additionally, the country's relatively small population and limited number of banks contribute to a more concentrated market compared to larger economies.

Underlying macroeconomic factors: The development of the banking market in Turkmenistan is also influenced by broader macroeconomic factors such as economic stability, inflation rates, and government policies. The stability of the country's economy and regulatory environment play a crucial role in shaping the growth and evolution of the banking sector. As Turkmenistan continues to modernize its economy and infrastructure, the banking market is expected to further adapt to meet the changing needs of consumers and businesses.

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.