US Commercial Banking Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 700.55 Billion |
| Market Size (2029) | USD 875.52 Billion |
| CAGR (2024 - 2029) | 4.56 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Commercial Banking Market Analysis
The US Commercial Banking Market size is estimated at USD 700.55 billion in 2024, and is expected to reach USD 875.52 billion by 2029, growing at a CAGR of 4.56% during the forecast period (2024-2029).
The primary source of revenue for most banks is business lending, which typically accounts for 60% of their income in addition to their absolute loan portfolio, particularly for provincial and smaller banks. Several leading banks in the United States are investing in innovation as a critical factor for their future growth in some form or another. As for customer portals and applications, in the current computerized banking landscape, IT drives are having similar effects in the back-office as they do in client-facing channels. Corporate and commercial banking revenue in the United States has increased at a rate that is twice the rate of economic growth.
The commercial banking market in the United States is expected to see an increase in partnerships between fintech firms and digital lending companies for payment collections. Open banking is expected to reshape the competition in the market in the next few years. Banks that invest in capabilities are projected to position themselves well to remain strong consumer brands. However, loan growth has increased in the last few months, with annual growth slowing from nearly double digits late the previous year to around 9%, indicating that tighter conditions are starting to dampen bank credit growth.
US Commercial Banking Market Trends
Increased Digitalization in the Commercial Banking Market
Digital transformation is well underway in commercial banking, and IT leaders in this industry anticipate that the strategic value of digital innovation will grow significantly over the next couple of years. Although cash digitization and digital financial services have evolved to meet consumer needs, it can be difficult for some providers to keep up with the fluidity of digital commerce and fast-paced innovation. For instance, Citi launched CitiDirect, a new digital platform designed to meet the needs of its commercial banking clients. This initiative is part of a larger strategic investment strategy to meet the increasing global demands of these customers by providing a unified digital platform. The platform is available in the United States, with over two-thirds of the company's US client base utilizing it. The company planned to expand its reach to other markets in the latter part of 2023, including Hong Kong, Singapore, and the United Kingdom.
Increase in Usage of Open Banking in the United States
Open banking empowers consumers, offering them a wider array of options to bolster their financial well-being. It grants them enhanced access to swift, personalized digital platforms, aiding in monitoring expenses, adhering to budgets, and achieving financial milestones. The onset of open banking is timely amid heightened economic uncertainties. Driven by a rising demand for seamless services, the United States has swiftly embraced a cutting-edge open banking ecosystem. This approach enables financial institutions to harness consumer-approved financial data, delivering bespoke, adaptable, and innovative services. Unsurprisingly, this proposition has struck a chord with US consumers, with a staggering 87% actively engaging in open banking. These consumers routinely link their banks, investments, and loan accounts to a variety of financial apps, spanning payments, personal finance, and BNPL services. Notably, while payment applications lead the pack at 68%, bank apps closely follow, with 76% of consumers utilizing them for financial transactions.
US Commercial Banking Industry Overview
The US commercial banking market is consolidated. It is one of the most competitive in the world, with major players worldwide operating in the market. There are many opportunities for growth in the commercial banking market in the United States over the next few years, especially for fintech startups partnering with these big players, which will further increase competition in the market. With a few big players dominating the market, there is a high degree of consolidation in the market studied, with the market share being at its highest level in 10 years. The leading players in the market are JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Well Fargo & Co., and Goldman Sachs Group Inc.
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US Commercial Banking Market Leaders
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JPMorgan Chase & Co.
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Bank of America Corp.
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Citigroup Inc.
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Wells Fargo & Co.
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Goldman Sachs Group Inc.
*Disclaimer: Major Players sorted in no particular order
US Commercial Banking Market News
- July 2023: Citi unveiled its trade and working capital eLoans, a financial solution tailored to address immediate and future working capital needs. Citi eLoans, emphasizing simplicity and security, aims to empower eligible clients with the necessary liquidity to sustain their commercial operations.
- May 2023: JPMorgan Chase made a significant move by acquiring the lion's share of assets, along with deposits and select liabilities, from First Republic Bank in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC). This acquisition contained First Republic Bank's assets, boasting a loan portfolio of around USD 173 billion and securities valued at approximately USD 30 billion.
US Commercial Banking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Economic Growth is Driving the Market
4.2 Market Restraints
4.2.1 Cyber Security Threats are Restraining the Market
4.3 Market Opportunities
4.3.1 The Ongoing Rise of Fintech Companies
4.3.2 Increased Regulatory Developments in Commercial Banking
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Digital Disruptions and Technological Trends in the US Banking Industry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product
5.1.1 Commercial Lending
5.1.2 Treasury Management
5.1.3 Syndicated Loans
5.1.4 Capital Market
5.1.5 Other Products
5.2 By Function
5.2.1 Accepting Deposits
5.2.2 Advancing Loans
5.2.3 Credit Creation
5.2.4 Financing Foreign Trade
5.2.5 Agency Services
5.2.6 Other Functions
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 JP Morgan
6.2.2 Bank of America
6.2.3 Wells Fargo
6.2.4 Citibank
6.2.5 Goldman Sachs Group Inc.
6.2.6 Morgan Stanley
6.2.7 US Bancorp
6.2.8 PNC Financial Services Group Inc.
6.2.9 Capital One Financial Corp.*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER
US Commercial Banking Industry Segmentation
Commercial banks, as financial institutions, offer a spectrum of services to the public, encompassing withdrawals, deposits, and investment lending. Borrowing and lending are the two main components of commercial banking. This report will provide a detailed analysis of the US commercial banking market. The report delves into market dynamics and emerging trends in segments and regional markets and offers insights into various product and application types. It also analyses the key players and the competitive landscape.
The US commercial banking market is segmented by product and function. By product, the market is segmented into commercial lending, treasury management, syndicated loans, capital markets, and other products. By function, the market is segmented into accepting deposits, advancing loans, credit creation, financing foreign trade, agency services, and other functions. The report offers market sizes and forecasts in terms of value (USD) for all the above segments.
| By Product | |
| Commercial Lending | |
| Treasury Management | |
| Syndicated Loans | |
| Capital Market | |
| Other Products |
| By Function | |
| Accepting Deposits | |
| Advancing Loans | |
| Credit Creation | |
| Financing Foreign Trade | |
| Agency Services | |
| Other Functions |
US Commercial Banking Market Research Faqs
How big is the US Commercial Banking Market?
The US Commercial Banking Market size is expected to reach USD 700.55 billion in 2024 and grow at a CAGR of 4.56% to reach USD 875.52 billion by 2029.
What is the current US Commercial Banking Market size?
In 2024, the US Commercial Banking Market size is expected to reach USD 700.55 billion.
Who are the key players in US Commercial Banking Market?
JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and Goldman Sachs Group Inc. are the major companies operating in the US Commercial Banking Market.
What years does this US Commercial Banking Market cover, and what was the market size in 2023?
In 2023, the US Commercial Banking Market size was estimated at USD 668.60 billion. The report covers the US Commercial Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Commercial Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key drivers of the US Commercial Banking Market?
The key drivers of the US Commercial Banking Market are a) Growth in residential construction and renovation activities b) Increasing demand for digital banking solutions c) Rise of partnerships between FinTech firms and commercial banks d) Open banking allowing for more competition and innovative financial products
US Commercial Banking Industry Report
The US Commercial Banking Market, a crucial segment of the financial industry, offers a wide range of services such as commercial lending, treasury management, syndicated loans, and capital market services. It plays a vital role in economic growth by providing credit and financial services to a diverse clientele, including individuals, SMEs, large corporations, and government agencies. With a focus on innovation and technology, US commercial banks are enhancing their customer portals and mobile applications to meet evolving client needs. The competitive landscape sees banks investing in digital transformation and open banking to improve customer experiences and expand services. Despite challenges like regulatory compliance and high collateral demands, the sector is growing, driven by digital banking advancements, personalized services, and collaborations between traditional banks and FinTech companies. This growth reflects the evolving trends in US commercial banking. For detailed statistics on market share, size, and revenue growth, Mordor Intelligence™ Industry Reports offer a comprehensive analysis, including forecasts and historical overviews, available as a free report PDF download.
