US Commercial Banking Market Size (2024 - 2029)

The US commercial banking market size is projected to experience growth over the forecast period, driven primarily by business lending, which constitutes a significant portion of bank revenue. The market is witnessing increased collaboration between FinTech firms and digital lending companies, particularly in payment collections, and the advent of open banking is anticipated to alter competitive dynamics. Despite recent slowdowns in loan growth due to tighter conditions, banks that focus on enhancing their capabilities are expected to maintain strong consumer brand positions. The pandemic has accelerated digital payment adoption and expanded financial services, further influencing market size and dynamics.

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Market Size of US Commercial Banking Industry

US Commercial Banking Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 226.44 Billion
Market Size (2029) USD 269.28 Billion
CAGR (2024 - 2029) 2.00 %
Market Concentration Medium

Major Players

US Commercial Banking Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Commercial Banking Market Analysis

The US Commercial Banking Market size is estimated at USD 226.44 billion in 2024, and is expected to reach USD 269.28 billion by 2029, growing at a CAGR of greater than 2% during the forecast period (2024-2029).

The primary source of revenue for most banks is business lending, which typically accounts for 60% of their revenue 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 key 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 US is expected to see an increase in partnerships between FinTech firms and digital lending companies for payment collections. Open banking is also expected to reshape the competition in the market in the next few years. Banks that invest in capabilities will 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 tighter conditions are starting to dampen bank credit growth. Over the last three years, household budgets have benefitted from excess savings and debt relief from the COVID-19 pandemic, but that is about to change.

The coronavirus pandemic has had a significant impact on financial inclusion, leading to a surge in digital payments at a time when formal financial services are expanding globally.

US Commercial Banking Industry Segmentation

Commercial banks are financial institutions that provide a range of services to the general public, including withdrawals and deposits, as well as lending for investment. Borrowing and lending are the two main components of commercial banking. 

The United States Commercial Banking Market Is Segmented by Type of Product (Depository Services, Other Non-Interest Income Generating Products, Lending services such as commercial and Industrial loans, Residential, Agricultural, and Real Estate loans, Loans to individuals excluding credit cards and credit card loans, and other services. The report offers market sizes and forecasts in 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
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US Commercial Banking Market Size Summary

The US commercial banking industry is poised for growth, driven by strategic investments in digital innovation and partnerships with FinTech firms. As banks increasingly focus on enhancing their digital platforms, such as Citi's CitiDirect®, they are positioning themselves to meet the evolving demands of their commercial clients. The integration of open banking is expected to further transform the competitive landscape, offering consumers more personalized and flexible financial services. This shift towards digital transformation is not only improving customer engagement but also streamlining operations, allowing banks to maintain their competitive edge in a rapidly changing market.

Despite the promising growth trajectory, the industry faces challenges such as tightening credit conditions and the need to adapt to the fluidity of digital commerce. The pandemic has accelerated the adoption of digital payments and financial services, but maintaining pace with innovation remains a challenge for some providers. The market is characterized by a high level of competition, with major players like JPMorgan Chase, Bank of America, and Citigroup dominating the landscape. These institutions are leveraging their scale and technological advancements to drive market consolidation and expand their reach, particularly through strategic acquisitions and the development of state-of-the-art financial solutions.

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US Commercial Banking Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Deepening Share of Wallet Through Fee-Based Products

      2. 1.1.2 Embedding Data and Analytics in Decision Making

    2. 1.2 Market Restraints

      1. 1.2.1 Rising Loan Interest Rates

      2. 1.2.2 Decrease in the Use of Big Data, AI, and Advanced Analytics

    3. 1.3 Market Opportunities

      1. 1.3.1 The Ongoing Rise of Fintech Companies

      2. 1.3.2 Increased Regulatory Developments in Commercial Banking

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the market

    6. 1.6 Digital Disruptions and Technological Trends in the US Banking Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product

      1. 2.1.1 Commercial Lending

      2. 2.1.2 Treasury Management

      3. 2.1.3 Syndicated Loans

      4. 2.1.4 Capital Market

      5. 2.1.5 Other Products

    2. 2.2 By Function

      1. 2.2.1 Accepting Deposits

      2. 2.2.2 Advancing Loans

      3. 2.2.3 Credit Creation

      4. 2.2.4 Financing Foreign Trade

      5. 2.2.5 Agency Services

      6. 2.2.6 Other Functions

US Commercial Banking Market Size FAQs

The US Commercial Banking Market size is expected to reach USD 226.44 billion in 2024 and grow at a CAGR of greater than 2% to reach USD 269.28 billion by 2029.

In 2024, the US Commercial Banking Market size is expected to reach USD 226.44 billion.

US Commercial Banking Market Report Snapshots

US Commercial Banking Industry Size - Market Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)