United States Private Banking Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 101.74 Billion |
| Market Size (2029) | USD 162.89 Billion |
| CAGR (2024 - 2029) | 9.87 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Private Banking Market Analysis
The United States Private Banking Market size is estimated at USD 101.74 billion in 2024, and is expected to reach USD 162.89 billion by 2029, growing at a CAGR of 9.87% during the forecast period (2024-2029).
Private banking offers a suite of services, including investment advisory, asset management, and gift and estate planning, catering to both individuals and enterprises. As the number of high-net-worth and ultra-high-net-worth individuals in the United States grew, so did the demand for these services.
- This market is defined by banking institutions that manage wealth for clients with investable assets exceeding USD 1 million. Tailored for affluent clients, private banking focuses on long-term money management that is aligned with individual goals and needs.
- Private banks are instrumental in shaping investment choices and earning revenue through asset management fees, portfolio performance, and bespoke wealth-advisory services. These banks provide personalized financial strategies, tax optimization, and risk management solutions, ensuring clients' financial objectives are met. They also offer services such as succession planning, philanthropic advisory, and lifestyle management, which include concierge services and luxury asset management.
- The United States, with its business-friendly environment, established regulations, and advanced infrastructure, boasts a robust economy. The thriving US economy not only strengthened the private banking sector but also drew affluent global investors, particularly in secure assets like urban real estate. As a result, the US private banking market experienced growth rates surpassing those of the broader advisory and financial services sector.
United States Private Banking Market Trends
Rising Number of HNWIs Driving the Market
- Private banking is a team of professionals who deliver private banking and wealth management services to high-net-worth individuals and families, from banking and cash management to lending, investment strategies, and trust and wealth advisory services.
- Many large banks target private banking services because of the increasing wealth of individuals and the relative profitability of private banking businesses. A high net-worth individual is at least USD 1 million in liquid assets, excluding personal assets such as a primary residence.
- Investors with liquid assets of less than USD 1 million but more than USD 100,000 are considered sub-HNWIs. Very high-net-worth individuals include a net worth of at least USD 5 million, while ultra-high-net-worth individuals are worth at least USD 30 million. Thus, the increase in HNWIs in the United States is expected to drive the need for private banking services.
Increasing Disposable Income Drives Market Growth
Disposable income, denoting the funds left with individuals or households post-tax deductions, holds significance. With rising disposable incomes, individuals gain more financial flexibility, enabling them to save and invest in financial assets. This trend has notably fueled the expansion of the private banking sector. Banks, recognizing this trend, have taken steps to bolster bank deposits, further propelling the growth of private banking. As disposable incomes surge, individuals are amassing substantial wealth, rendering them potential clients for private banking services. Moreover, this rise in disposable incomes also broadens the pool of high-net-worth and ultra-high-net-worth individuals, thereby expanding the market scope for private banks.
United States Private Banking Industry Segmentation
The US private banking market is moderately fragmented. It includes a diversity of high-quality investment services globally. A private banking team of professionals delivers private banking and wealth management services to high-net-worth individuals and families. The customer of a private bank comprises the benefit of being forever in a professional exchange with an allotted private banker dealing with assets. The major players in this space are Morgan Stanley, JP Morgan Chase & Co., Bank of America Corporation, Wells Fargo & Company, and The Goldman Sachs Group Inc.
United States Private Banking Market Leaders
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Morgan Stanley
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JP Morgan Chase & Co
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Bank of America Corporation
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Wells Fargo & Company
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The Goldman Sachs Group, Inc.
*Disclaimer: Major Players sorted in no particular order
United States Private Banking Market News
- February 2024: Bank of America furthered its efforts in tailoring digital banking experiences as clients increasingly gravitated toward managing their finances online.
- March 2024: Goldman Sachs Asset Management, a division of Goldman Sachs Group, revealed plans to bolster its private credit portfolio. The firm aims to grow it from the current USD 130 billion to a target of USD 300 billion over the next five years.
United States Private Banking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Number of HNWIs
4.2.2 Digitization of Private Banking
4.3 Market Restraints
4.3.1 Stringent Regulatory Complaince Limits Flexibility in Services
4.4 Market Opportunities
4.4.1 Customized Products and Services
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porters' Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Technology Innovation in the Market
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Asset Management Service
5.1.2 Insurance Service
5.1.3 Trust Service
5.1.4 Tax Consulting
5.1.5 Real Estate Consulting
5.2 By Application
5.2.1 Personal
5.2.2 Enterprise
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Morgan Stanley
6.1.2 JP Morgan Chase & Co.
6.1.3 Bank of America Corporation
6.1.4 Wells Fargo & Company
6.1.5 The Goldman Sachs Group Inc.
6.1.6 Citigroup
6.1.7 Raymond James
6.1.8 Northern Trust
6.1.9 Charles Schwab
6.1.10 U.S. Bancorp*
- *List Not Exhaustive
7. FUTURE MARKET TRENDS
8. DISCLAIMER AND ABOUT US
United States Private Banking Industry Segmentation
The private banking services industry offers a range of specialized services, including investment advisory, asset management, and gift and estate planning. These services cater to high-net-worth clients and ultra-high-net-worth clients.
The private banking market in the United States is segmented by type and application. By type, the market is further segmented into asset management service, insurance service, trust service, tax consulting, and real estate consulting. By application, the market is further segmented into personal and enterprise. The report offers market sizes and forecasts in terms of revenue (USD) for all the above segments.
| By Type | |
| Asset Management Service | |
| Insurance Service | |
| Trust Service | |
| Tax Consulting | |
| Real Estate Consulting |
| By Application | |
| Personal | |
| Enterprise |
United States Private Banking Market Research Faqs
How big is the United States Private Banking Market?
The United States Private Banking Market size is expected to reach USD 101.74 billion in 2024 and grow at a CAGR of 9.87% to reach USD 162.89 billion by 2029.
What is the current United States Private Banking Market size?
In 2024, the United States Private Banking Market size is expected to reach USD 101.74 billion.
Who are the key players in United States Private Banking Market?
Morgan Stanley, JP Morgan Chase & Co, Bank of America Corporation, Wells Fargo & Company and The Goldman Sachs Group, Inc. are the major companies operating in the United States Private Banking Market.
What years does this United States Private Banking Market cover, and what was the market size in 2023?
In 2023, the United States Private Banking Market size was estimated at USD 91.70 billion. The report covers the United States Private Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Private Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Private Banking Industry Report
Statistics for the 2024 United States Private Banking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Private Banking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
