Traditional Banks - United States

United States

In 2024, it is projected that the Net Interest Income in the Traditional Banks market market in the United States will reach a staggering US$482.90bn.
The market segment of Traditional Commercial Banking is expected to dominate with a projected market volume of US$446.40bn in the same year.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of -6.77%, resulting in a market volume of US$364.80bn by 2028.
In a global perspective, in China is expected to generate the highest Net Interest Income, reaching US$4,690.0bn in 2024.
Traditional Banks in the United States are facing increased competition from fintech startups, driving them to innovate and improve their digital offerings.

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

Definition:

The Traditional Retail and Commercial Banks market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.
The traditional banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. These 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.
In this market, banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. However, they also face challenges, such as increased competition and changing customer preferences, which are driving the need for continuous improvement and adaptation.
Overall, the traditional retail and commercial banking market provides a wide range of financial services to both individuals and businesses through established, trusted channels and continues to play a vital role in the financial landscape.

Structure:

The market consists of two segments:
- The Traditional Retail Banks market refers to financial services provided to individual consumers (e.g., personal loans, savings and checking accounts, credit cards, mortgages).
- The Traditional Commercial Banks market refers to financial services provided to businesses, including small and large enterprises (loans, lines of credit, other financial products specifically designed for businesses).

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., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

The Traditional Banks market in United States has been experiencing significant developments in recent years.

Customer preferences: Customers in the United States are increasingly seeking personalized banking services, convenient digital banking options, and seamless integration between online and offline banking experiences. They value security, reliability, and efficiency in their banking transactions, driving traditional banks to invest in advanced technology and innovative solutions to meet these demands.

Trends in the market: One prominent trend in the Traditional Banks market in the United States is the shift towards digital banking channels. Traditional banks are expanding their online and mobile banking offerings to cater to tech-savvy customers who prefer the flexibility and convenience of managing their finances remotely. This trend is further accelerated by the COVID-19 pandemic, which has highlighted the importance of digital banking capabilities.

Local special circumstances: In the United States, the market is highly competitive with a large number of traditional banks vying for market share. This intense competition has led to a focus on differentiation through customer service, product innovation, and strategic partnerships. Additionally, regulatory requirements and compliance standards play a significant role in shaping the operations and offerings of traditional banks in the country.

Underlying macroeconomic factors: The macroeconomic landscape in the United States, including interest rates, inflation, and economic growth, influences the Traditional Banks market. Fluctuations in these factors impact lending practices, investment strategies, and overall profitability for traditional banks. As the economy evolves, traditional banks must adapt their business models to remain competitive and resilient in the market.

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.