Banking - Australia

Australia

In Australia, the Banking market is expected to witness a significant growth in Net Interest Income, reaching a projected value of AU €97.61bn by 2024.
Among the market players, Traditional Banks are projected to dominate with a market volume of AU €70.26bn in 2024.
Looking ahead, Net Interest Income is anticipated to exhibit a steady annual growth rate of -1.41% (CAGR 2024-2029), resulting in a market volume of AU €90.91bn by 2029.
In a global context, China is expected to generate the highest Net Interest Income with a projected value of AU €4,017.0bn in 2024.
This showcases the prominence of the Chinese Banking market sector on a global scale.
Australia's banking market is experiencing a shift towards digital banking, with a growing number of customers opting for online and mobile banking services.

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

Over the past few years, the Banking market in Australia has experienced significant growth and transformation.

Customer preferences: Customers in Australia have shown a strong inclination towards digital banking services, leading to a rise in online and mobile banking platforms. The convenience and accessibility offered by these digital channels have become increasingly popular among tech-savvy consumers. Additionally, there is a growing demand for personalized banking solutions tailored to individual needs and preferences.

Trends in the market: One notable trend in the Australian banking market is the increasing competition among both traditional banks and fintech companies. This competition has resulted in a greater focus on innovation and the development of new products and services to attract and retain customers. Moreover, sustainability and ethical banking practices have become key priorities for many banks in Australia, reflecting a broader global trend towards responsible banking.

Local special circumstances: Australia's unique geographical landscape, with a dispersed population across vast distances, has influenced the way banking services are delivered in the country. The need for efficient and accessible banking solutions in remote areas has driven the adoption of digital banking technologies. Additionally, the regulatory environment in Australia plays a significant role in shaping the banking market, with stringent regulations aimed at ensuring financial stability and consumer protection.

Underlying macroeconomic factors: The stability of the Australian economy, coupled with low interest rates, has contributed to the growth of the banking sector. Furthermore, demographic shifts, such as an aging population and changing consumer preferences, are driving banks to adapt their strategies to cater to evolving customer needs. Overall, the Banking market in Australia is poised for continued evolution and innovation in response to changing market dynamics and consumer demands.

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.