United States Private Banking Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 88 Billion |
| Market Size (2029) | USD 143.28 Billion |
| CAGR (2024 - 2029) | 10.24 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United States Private Banking Market Analysis
The United States Private Banking Market size is estimated at USD 88 billion in 2024, and is expected to reach USD 143.28 billion by 2029, growing at a CAGR of 10.24% during the forecast period (2024-2029).
The demand for private banking services increased as the number of high-net-worth and ultra-high-net-worth individuals in the United States grew. The demand also comprises banking institutions actively managing wealth for clients with investable assets exceeding USD 1.0 million.
Private banks can make investment decisions and generate revenue through fees based on asset management, portfolio performance, and specialty wealth-advisory services. The US economy further propelled the industry, as wealthy individuals worldwide sought to park their wealth in secure assets such as urban real estate.
Globalization plays an essential role in the growth of the private banking market in the United States. High Net Worth individuals seek financial services as international business activities and cross-border wealth management increase.
Rising demand for private equity, increased transparency because of the increased use of digitalization in the financial sector, and the need for better consumer experience drive the market's growth. The rise in the number of startups and businesses in the United States focused on accelerating their revenue and profitability offers great market growth opportunities.
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 targeted private banking services because of the growing wealth of individuals and the relative profitability of private banking businesses. A high net-worth individual is at least USD 1 million in liquid financial assets, excluding personal assets such as a primary residence. Investors with less than USD 1 million but more than USD 100,000 liquid assets 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.
The United States has experienced sustained economic growth over the years, leading to the accumulation of wealth among individuals and households. Strong economic fundamentals, technological innovation, and entrepreneurship contribute to the creation of wealth and the expansion of the HNWI segment. The performance of financial markets, including stocks, bonds, and real estate, has a significant impact on the wealth of HNWIs. Bull markets and favourable investment conditions can drive portfolio growth and increase the net worth of affluent individuals, leading to a larger population of HNWIs.
Digitization of Private Banking
Rapid technological developments, the expectations of digital customers, and the emergence of new competitors drove private banks to reconsider their business models and improve their internal processes.
The US financial institutions and banks are focusing on artificial intelligence or machine learning, blockchain, data analysis or big data, and Robo-advisory platforms. They are considered explosive and are intended to significantly change how they work, with a strong impact on the strategies of financial institutions and their governance. It is especially in the operational area, where they contribute great progress and greater efficiency with their processes which results in the growth of the private banking market share.
Technologies are being developed to handle the threats that are increasing with cybersecurity. Bank of America Corp was the top digitalization innovator in private banking and is followed by JPMorgan Chase & Cos.
United States Private Banking Industry Overview
US private banking combines high quality and high diversity of 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 are Morgan Stanley, JP Morgan Chase & Co, Bank of America Corporation, Wells Fargo & Company, The Goldman Sachs Group, Inc., Citigroup, Raymond James, Northern Trust, Charles Schwab, and US Bancorp.
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.
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Citigroup
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Raymond James
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Northern Trust
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Charles Schwab
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U.S. Bancorp
*Disclaimer: Major Players sorted in no particular order
United States Private Banking Market News
- In September 2023, Wells Fargo partnered with Centerbridge to offer direct financing alternatives to middle-market North American corporations that are not sponsors. Overland Advisors, a business development firm specializing in senior secured loans, will be established to facilitate this partnership.
- In June 2023, as part of a four-year development across nine locations, including Louisville, Milwaukee, and New Orleans, Bank of America has planned to open new financial centres in Nebraska, Wisconsin, Alabama, and Louisiana.
United States Private Banking Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 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
- 4.3 Market Restraints
- 4.4 Insights on Various Regulatory Trends Shaping the Market
- 4.5 Insights on impact of technology in the Market
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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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
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5.2 By Application
- 5.2.1 Personal
- 5.2.2 Enterprise
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concetration Overview
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6.2 Company Profiles
- 6.2.1 Morgan Stanley
- 6.2.2 JP Morgan Chase & Co
- 6.2.3 Bank of America Corporation
- 6.2.4 Wells Fargo & Company
- 6.2.5 The Goldman Sachs Group, Inc.
- 6.2.6 Citigroup
- 6.2.7 Raymond James
- 6.2.8 Northern Trust
- 6.2.9 Charles Schwab
- 6.2.10 U.S. Bancorp*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
United States Private Banking Industry Segmentation
The private banking services industry primarily provides investment advisory, asset management, and gift and estate planning, among other specialized services. These services are for high-net-worth clients with at least USD 1.0 million in investable assets and ultra-high-net-worth clients whose investable assets exceed USD 10.0 million.
The private banking market in the United States is segmented by type and application. By type, the market is sub-segmented into asset management service, insurance service, trust service, tax consulting, and real estate consulting. The application of the market is sub-segmented into personal and enterprise. The report offers market sizes and forecasts for the private banking market in the United States 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 88 billion in 2024 and grow at a CAGR of 10.24% to reach USD 143.28 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 88 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, The Goldman Sachs Group, Inc., Citigroup, Raymond James, Northern Trust, Charles Schwab and U.S. Bancorp 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 78.99 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.
