Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Switzerland

Switzerland

In Switzerland, the Traditional Commercial Banking market market is expected to witness a significant growth in Net Interest Income.
It is projected to reach €37.15bn by 2024.
Furthermore, there is an estimated annual growth rate (CAGR 2024-2029) of 3.43%, indicating that the market volume will increase to €43.98bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income in 2024, reaching a staggering €1,339.0bn.
Switzerland's traditional commercial banking sector remains resilient, driven by its reputation for stability, privacy, and expertise in serving wealthy individuals and multinational corporations.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

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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Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

Switzerland, known for its strong financial sector and stability, has a Traditional Commercial Banking market that is evolving in response to changing customer preferences and global trends.

Customer preferences: Customers in Switzerland are increasingly seeking personalized and convenient banking services. They value efficiency, reliability, and security in their banking transactions. With the rise of digitalization, there is a growing demand for online and mobile banking solutions that offer seamless experiences and access to a wide range of financial products.

Trends in the market: In Switzerland, the Traditional Commercial Banking market is seeing a shift towards digitalization and innovation. Traditional banks are investing in technology to improve their services and stay competitive with fintech companies. There is a growing trend of partnerships between banks and fintech firms to offer new and innovative solutions to customers. Additionally, sustainable finance is gaining traction in the Swiss banking sector, with a focus on environmental, social, and governance (ESG) criteria.

Local special circumstances: Switzerland's position as a global financial hub and its reputation for stability and security play a significant role in shaping the Traditional Commercial Banking market. The country's strict regulations and high standards for financial institutions contribute to building trust among customers. Moreover, the presence of multinational corporations and high-net-worth individuals in Switzerland influences the demand for sophisticated banking services tailored to their specific needs.

Underlying macroeconomic factors: The Swiss Traditional Commercial Banking market is influenced by various macroeconomic factors, including interest rates, economic growth, and regulatory policies. The low-interest-rate environment in Switzerland poses challenges for banks to maintain profitability, leading them to explore new revenue streams and cost-cutting measures. Economic stability and the country's strong GDP growth support the overall performance of the banking sector. Additionally, regulatory changes and compliance requirements impact the operations and strategies of 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.