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US Commercial Banking Market- Segmented by (Banking Products & Services), and by US States - Growth, Trends, and Forecast (2019 - 2024)
The US Commercial Banking Market is expected to register a CAGR of 7% over the forecast period, 2019 – 2024.
US Commercial Banks offer loans to the borrowers, from private individuals, corporations, to regional & national government agencies. In 2019, the US Commercial Banks revenue has reached USD 776 billion. Commercial banks, a grouping that finances their loan activities by lending out money gathered from the business; it includes savings banks, thrifts and credit unions, the funds deposited by individuals and SMEs to large corporations. Commercial lending is a leading revenue driver for most banks, and it typically represents 60%-plus of the total loan portfolio for regional and smaller banks. The longstanding approach to banking started with lending, which then provided a foundation for treasury, cash management, and other banking services.
Several Leading banks in the US are betting on technology as a key driver of their future business, in one form or another. In terms of client portals and mobile apps. In today’s digital banking scenario IT advances are having equivalent impacts behind the scenes as they are in these customer-facing channels.
The US Commercial Banking Market covers all the available major banking products and services in the major US commercial Banks like Depository and Non-Interest Income Sources, Commercial and Industrial Loans, Residential, Agricultural and Real estate Loans, Individual and Credit Card Loans and other Income sources. Furthermore, the market is segmented into geographical states of US.
|Depository services and other noninterest-income generating products|
|Commercial and industrial loans|
|Residential, Agricultural and Real Estate loans|
|Loans to individuals excluding credit cards|
|Credit card loans|
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According to Industry Sources, there had been 259 bank mergers among regional banks and thrifts in the US during 2016 and 2018. The larger share had been in the mid-west (102) and the south-east (67). Just 27 of these deals had a transaction value greater than USD 100 million, while 18 were between USD 50 million and USD 100 million. 41 deals were valued at less than USD 50 million.
In a rising rate environment, regional banks want to gather huge deposits and the easiest way to do this is to buy a smaller competitor. It is observed that 69 of these sellers are with assets of less than USD 250 million where none of the deals involved a seller with assets greater than USD 10 billion. In the US, several larger regional banks have been collaborating with FinTechs to get scale and there have been some bank mergers too.
In May 2018, Fifth Third Bancorp (USD 142 billion in assets) agreed to buy Chicago-based MB Financial (assets of USD 20 billion) in a USD 4.7 billion deal, and BB&T (USD 221 billion in assets) has revealed that it is also looking for an acquisition in the USD 20 to USD 30 billion range. Interestingly, such a deal may push BB&T over the new, USD 250 billion thresholds.
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Due to stringent regulations, traditional financial services lenders have underserved small businesses because of low margins, but FinTechs have found ways to serve even the smallest companies profitably. BigTechs such as Amazon, Alibaba and Google leverage technology in providing business loans and are threatening the traditional lending system, necessitating banks to heed the threat. With the proliferation of technology, digital services are snowballing, and so are the expectations of business customers for faster and simpler services.
FinTechs and peer-to-peer lenders are leveraging non-conventional data sources and predictive modeling for faster credit assessment. It offer a capital-light marketplace to provide low-cost lending services, and they leverage alternative data (from social platforms) to provide deep customer insights. It also realize the benefits of partnering with banks to achieve economies of scale and gain from banks’ regulatory expertise. In the recent times, National Bank of Canada collaborated with Thinking Capital to offer loans to a broader segment of small- and medium-sized businesses.
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The US Commercial Banking Market is highly competitive, with the presence of major international players. JP Morgan Chase & Co., Bank of America Corp, Citigroup Inc., and Wells Fargo & Co. has the highest market share since a decade. The US Commercial Banking Market presents opportunities for growth during the forecast period especially for the FinTech Startups which are collaborating with these large players, which is expected to further drive market competition. With a few players holding a significant share, the US Commercial Banking Market has an observable level of consolidation
1.1 Scope of the Market
1.2 Market Definition
1.3 Executive Summary
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. MARKET INSIGHTS
3.1 US Current Economic and Banking Industry Scenario
3.2 Impact of Government Regulations and Initiatives on the Banking Industry
3.3 Review and Commentary on the Global Banking Industry on US Commercial Banking
3.4 Key Trends in US Banking and Finance Industry
3.5 Review and Commentary on the extent of RegTech on the Banking Industry
3.6 Digital Disruptions and Technological Trends in the US Banking Industry
3.7 Review and Commentary on US Banking Sector and FinTech Collaborations
4. MARKET DYNAMICS
4.4 Porter's Five Forces Analysis
4.5 Industry Value Chain Analysis
5. MARKET SEGMENTATION
5.1 BY PRODUCTS
5.1.1 Depository services and other noninterest-income generating products
5.1.2 Commercial and industrial loans
5.1.3 Residential, Agricultural and Real Estate loans
5.1.4 Loans to individuals excluding credit cards
5.1.5 Credit card loans
5.2 BY STATES
5.2.2 New York
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Strategies Adopted by Major Players
7. COMPANY PROFILES
7.1 JPMorgan Chase & Co.
7.2 Bank of America Corp.
7.3 Citigroup Inc.
7.4 Wells Fargo & Co.
7.5 Goldman Sachs Group Inc.
7.6 Morgan Stanley
7.7 U.S. Bancorp
7.8 PNC Financial Services Group Inc.
7.9 TD Group US Holdings LLC
7.10 Capital One Financial Corp.*
8. INVESTMENT ANALYSIS
9. MAJOR MERGERS AND ACQUISITIONS IN THE US COMMERCIAL BANKING INDUSTRY
10. FUTURE OF COMMERCIAL BANKING INDUSTRY IN US
11.1 No. of FDIC-Insured Finnacial Institutions and Thrifts in US
11.2 Market Share of Major US Commercial Banks
11.3 Revenue and Net Income of Major US Commercial Banks
11.4 Interets Revenue of Major US Commercial Banks
11.5 Non-Interest Revenue of Major US Commercial Banks
11.6 Total Assets of Mjaor US Commercial Banks
11.7 Gross Loans of Major US Commercial Banks