Bahrain’s retail banking revenues are expected to grow at a Compound Annual Growth Rate (CAGR) of 6.8 percent between 2021 to 2026, a rise from 3.6 percent from 2016 to 2021, while GCC economies (UAE, Saudi Arabia, Kuwait, Bahrain, and Qatar) expect to see an 8.8 percent CAGR within the same period to 2026, according to a new report by Boston Consulting Group (BCG).
The report, titled Global Retail Banking 2022: Sense and Sustainability, also reveals that one-quarter of retail banks surveyed globally report that ESG is a primary focus area for their digital transformation, and another 38 percent say that ESG is a key criterion in selecting and prioritising digital transformation initiatives.
“Sustainability is and will continue to act as a long-term differentiator across industries. Combined with ESG principles, sustainability can address a greater number of stakeholders, expand on a green outreach and strengthen capabilities,” said Bhavya Kumar, BCG Managing Director & Partner. “The banking sector, in particular, can play a decisive role in driving ESG strategies, from catalysing sustainable markets to advancing broader targets under Bahrain’s Economic Vision 2030.”
In addition to ESG, through the five years from 2021 to 2026, payments, mortgages, and deposit products are likely to drive banking revenue growth in the GCC retail banking sector. An accelerated pace of digital payments and e-commerce adoption in the wake of COVID-19 will further benefit payment revenue growth.