Market Insights Financial Banking Traditional Banks

Traditional Retail Banking - Israel

Israel

In the Traditional Retail Banking market market of Israel, the projected Net Interest Income for 2024 is €9.26bn.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of -2.12%, leading to a market volume of €8.32bn by 2029.
When compared globally, China is anticipated to generate the highest Net Interest Income, amounting to €2,249.0bn in 2024.
Traditional retail banking in Israel is seeing a shift towards digital channels, as more customers embrace online banking services and mobile app functionalities.

Key regions: France, Brazil, Germany, United Kingdom, United States

Definition:
Traditional retail banking refers to the financial services sector that provides a range of financial products and services to individual consumers through store-based branches and other traditional channels. These services include personal loans, savings and checking accounts, credit cards, mortgages, and other financial products designed specifically for individual consumers.
Traditional retail 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.
Despite facing increased competition and changing customer preferences, traditional retail banks continue to play a vital role in the financial landscape. They are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services.
Overall, traditional retail banking provides a wide range of financial services to individual consumers through established, trusted channels and continues to be an important part of the financial landscape.

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., Bank of America Corp., and BNP Paribas.

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Analyst Opinion

Israel's Traditional Retail Banking market is experiencing significant growth and transformation driven by various factors.

Customer preferences: Customers in Israel are increasingly demanding more personalized and convenient banking services, leading to a rise in digital banking solutions. This shift in preferences is pushing traditional banks to innovate and enhance their online and mobile banking offerings to stay competitive in the market.

Trends in the market: One noticeable trend in the Israeli Traditional Retail Banking market is the emergence of neobanks and fintech companies offering alternative banking solutions. These new players are attracting tech-savvy customers with their user-friendly interfaces and innovative features, challenging traditional banks to adapt to the changing landscape.

Local special circumstances: Israel's unique position as a global technology hub is influencing the Traditional Retail Banking market. With a strong focus on innovation and entrepreneurship, Israeli banks are leveraging technology to streamline processes, improve customer experience, and stay ahead of the competition. This tech-driven environment is shaping the future of banking in the country.

Underlying macroeconomic factors: The stable economic growth and increasing disposable income in Israel are contributing to the expansion of the Traditional Retail Banking market. As more people gain access to financial services, the demand for banking products is on the rise. Additionally, government initiatives to promote financial inclusion and digital payments are further driving the growth of the banking sector in Israel.

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.