US Commercial Banking Market Size (2024 - 2029)

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.