Traditional Banks - Switzerland

Switzerland

In Switzerland, the net interest income in the Traditional Banks market market is forecasted to reach €52.76bn in 2024.
Traditional Commercial Banking holds the largest market share, with a projected volume of €37.15bn in 2024.
The net interest income is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 3.52%, resulting in a market volume of €62.73bn by 2029.
When compared globally, China is expected to generate the highest net interest income, amounting to €3,588.0bn in 2024.
Switzerland's traditional banks are embracing digital transformation to remain competitive in the rapidly evolving banking landscape.

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

Switzerland, known for its strong banking sector, has a well-established Traditional Banks market that continues to evolve with changing consumer preferences and market dynamics.

Customer preferences: Customers in Switzerland value stability, security, and personalized service when it comes to banking. Traditional banks in the country have built a reputation for reliability and trustworthiness, which are highly valued by Swiss customers. Additionally, there is a preference for in-person interactions and a conservative approach to financial services.

Trends in the market: In Switzerland, the Traditional Banks market is experiencing a shift towards digitalization and innovation. Traditional banks are investing in technology to improve customer experience, streamline operations, and stay competitive in the face of fintech challengers. Moreover, there is a growing trend towards sustainable and socially responsible banking practices in Switzerland, with traditional banks incorporating ESG criteria into their operations.

Local special circumstances: One of the unique aspects of the Traditional Banks market in Switzerland is the country's status as a global financial hub. Swiss banks have a long history of providing wealth management services to high-net-worth individuals and multinational corporations. This specialization in private banking sets Swiss traditional banks apart from their counterparts in other countries and shapes the market dynamics in Switzerland.

Underlying macroeconomic factors: The stability of the Swiss economy, coupled with low interest rates and a strong regulatory environment, influences the development of the Traditional Banks market in Switzerland. The country's reputation for financial stability and expertise attracts both domestic and international investors, driving growth in the traditional banking sector. Additionally, demographic trends such as an aging population and increasing wealth concentration play a role in shaping the market landscape for traditional banks in Switzerland.

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.