Banking - India

India

In India, the Banking market is expected to witness a significant growth in Net Interest Income, with a projection of reaching €426.20bn in 2024.
Traditional Banks are anticipated to dominate the market, with a projected market volume of €404.10bn in the same year.
Looking ahead, Net Interest Income is expected to maintain a steady growth rate, with a Compound Annual Growth Rate (CAGR 2024-2029) of 1.10%.
This growth is projected to result in a market volume of €450.20bn by 2029.
In comparison to other countries, China is expected to generate the highest Net Interest Income, with a projected amount of €4,017.0bn in 2024.
India's banking market is experiencing a surge in digital banking adoption, with mobile banking becoming increasingly popular among consumers.

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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Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Banking market in India has witnessed significant growth and transformation in recent years.

Customer preferences: Customers in India are increasingly turning towards digital banking solutions, opting for convenience and accessibility. Mobile banking and online transactions have become more popular due to the widespread adoption of smartphones and the government's push for digitalization. Additionally, customers are seeking personalized services and innovative products from banks to meet their evolving financial needs.

Trends in the market: One prominent trend in the Indian Banking market is the rise of fintech companies offering alternative financial services. These fintech firms are leveraging technology to provide seamless and efficient banking solutions, challenging traditional banks. Moreover, there is a growing focus on sustainable and socially responsible banking practices, with customers showing interest in environmentally friendly initiatives and ethical investments.

Local special circumstances: India's banking sector is unique due to its diverse customer base and regulatory environment. The market is characterized by a mix of public, private, and foreign banks, each catering to different segments of the population. The Reserve Bank of India (RBI) plays a crucial role in regulating the banking industry and ensuring financial stability. Additionally, the government's financial inclusion initiatives have aimed to bring banking services to underserved rural areas, driving further growth in the sector.

Underlying macroeconomic factors: The growth of the Banking market in India is also influenced by macroeconomic factors such as GDP growth, inflation rates, and interest rates. A robust economy with a large and young population contributes to the increasing demand for banking services. Moreover, regulatory reforms and policies aimed at promoting financial inclusion and digital payments have created a favorable environment for the sector 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.