Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - North America

North America

In the North American Traditional Commercial Banking market market, the projected Net Interest Income for 2024 is expected to reach US$0.40tn.
Looking ahead, the Net Interest Income is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 3.28% between 2024 and 2029, resulting in a market volume of US$0.47tn by 2029.
When comparing globally, it is worth noting that China is projected to generate the highest Net Interest Income with US$1,444.0bn in 2024.
In North America, traditional commercial banking is seeing a shift towards digitalization and online banking services.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

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.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Commercial Banking market in North America is experiencing notable shifts and developments driven by various factors.

Customer preferences: Customers in North America are increasingly seeking more personalized and convenient banking services. They value digital banking options, such as online and mobile banking, as well as seamless integration with other financial tools. Additionally, there is a growing demand for sustainable and socially responsible banking practices among customers in the region.

Trends in the market: In the United States, the Traditional Commercial Banking market is witnessing a trend towards consolidation, with larger banks acquiring smaller regional banks to expand their market presence and enhance their service offerings. This consolidation is also driven by the need to invest in technology to stay competitive in the evolving banking landscape. Moreover, there is a growing focus on enhancing cybersecurity measures to protect customer data and prevent cyber threats.

Local special circumstances: In Canada, the Traditional Commercial Banking market is influenced by regulatory changes aimed at promoting competition and innovation in the banking sector. This has led to the emergence of digital-only banks and fintech companies offering alternative banking solutions to customers. Additionally, the Canadian market is characterized by a strong emphasis on customer privacy and data protection, which impacts how banks operate and interact with their customers.

Underlying macroeconomic factors: The economic landscape in North America, including factors such as interest rates, inflation, and unemployment rates, plays a significant role in shaping the Traditional Commercial Banking market. Economic stability and growth drive demand for banking services, while economic downturns can lead to changes in customer behavior and preferences. Additionally, government policies and regulations related to banking and finance have a direct impact on the operations and competitiveness of banks in the region.

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.