The efficiency ratio of the U.S. banking industry fluctuated significantly between 2003 and 2024, signalling the varying performance and stability of the industry. The ratio, which measures the non-interest expense as a percentage of the net operating revenue, was 64.25 percent in the last quarter of 2024, notably lower than in the same quarter in the previous year. The highest efficiency ratios were measured during the global financial crisis in 2008.

The net income of Bank of America reached record high values at the end of the second quarter of 2021. The net income of the bank was around 9.22 billion U.S. dollars at that time. In the last two quarters of 2021, and the first quarter of 2022, however, the net income of Bank of America decreased moderately compared to the previous quarters. In the second quarter of 2022, the bank's income increased again and amounted to approximately 7.06 billion U.S. dollars. The last two quarters of 2022 brought another slight increase for Bank of America's quarterly net income, and the first three quarters of 2023 saw sharp increases. Finally, the net income dropped to 3.14 billion U.S. dollars in the fourth quarter of 2023.

Graph and download economic data for Federal Government; Corporate Equities Issued by Commercial Banking Under the Federal Financial Stabilization Programs; Asset, Level (BOGZ1FL313064173A) from 1945 to 2024 about issues, equity, federal, assets, banks, depository institutions, and USA.

Graph and download economic data for Federal Government; Corporate Bonds Issued by Commercial Banking Under TARP; Asset, Level (FGCBGSA027N) from 1945 to 2024 about TARP, issues, IMA, bonds, federal, corporate, assets, government, banks, depository institutions, and USA.

Graph and download economic data for Net Issues of International Debt Securities for Issuers in Financial Institutions Sector (Banks), All Maturities, Residence of Issuer in Latin America and Caribbean (DISCONTINUED) (IDSBMRINI4U) from Q2 1987 to Q2 2015 about Caribbean Economies, Latin America, issues, sector, maturity, financial, debt, residents, securities, Net, banks, and depository institutions.

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US Retail Banking Market Size 2025-2029

The US retail banking market size is forecast to increase by USD 92.1 billion, at a CAGR of 4.2% between 2024 and 2029.

Retail banking is undergoing significant transformation, driven by the ongoing digitalization of financial services. This trend is reflected In the increasing adoption of cloud-based retail banking solutions, which offer greater flexibility, scalability, and cost savings. However, this shift towards digital banking also presents new challenges, particularly In the area of cybersecurity. As more financial transactions move online, the risk of cyberattacks and data breaches increases. Retail banks must invest in strong cybersecurity measures to protect their customers' sensitive information and maintain trust in their brands. Another key trend is the growing use of artificial intelligence and machine learning in retail banking, which is enabling personalized customer experiences and more efficient operations. Despite these opportunities, retail banks face stiff competition from fintechs and other disruptors, requiring them to continually innovate and adapt to remain competitive.

What will be the Size of the market During the Forecast Period?

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The market is experiencing significant shifts driven by evolving consumer behaviors and emerging technologies. Domestic consumption continues to fuel demand for credit cards and loans, with credit card balances reaching an all-time high. Disposable income, however, remains a concern for some, leading to an increase in bankruptcy filings. Digital transformation is at the forefront of the industry, with tech-savvy competitors, including digital-first banks and fintechs, challenging traditional institutions. Customer expectations are higher than ever, leading to a focus on pre-approvals, funding, and a wider credit spectrum for loans. Strategic partnerships and investment in core products like cash management and digital banking are essential for staying competitive. The consumer lending niche, in particular, is seeing rapid innovation, with online banks and digital banking solutions offering convenience and ease of use.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Private sector banks
  Public sector banks
  Foreign banks
  Community development banks
  Non-banking financial companies


Service

  Saving and checking account
  Personal loan
  Mortgages
  Debit and credit cards
  Others


Channel

  Direct sales
  Distributor


Geography

  US

By Type Insights

The private sector banks segment is estimated to witness significant growth during the forecast period.

The market's private sector segment has experienced growth due to various factors, including regulatory changes and technological advancements. Regulatory reforms have created a more favourable environment for new entrants, leading to an increase In the number of private banks. Open banking and fraud exposure have influenced business models, necessitating digital transformation. Consumer preferences, particularly among millennials and Gen Z, prioritize convenience and privacy. These factors have driven the growth of private banks, making them an essential component of the US retail banking landscape.

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Market Dynamics

Our US Retail Banking Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the US Retail Banking Market?

Ongoing digital transformation in retail banking is the key driver of the market.

Retail banking is undergoing a digital transformation, with an increasing focus on providing convenient and accessible online and mobile banking experiences for consumers. This shift is driven by the growing importance of digital channels in domestic consumption and the rising use of credit cards and loans. Banks are investing heavily in digital technologies to meet changing customer expectations and compete with tech-savvy fintechs and digital-first banks. According to a consumer survey, millennials and Gen Z generations prefer digital banking solutions that offer real-time transaction tracking, personalized services, and secure payments. BNP Paribas, for instance, has invested around USD 2 billion in information and communication technology (ICT) in 2023 to streamline banking operations using AI, the cloud, and other digital technologies.
Digital banking also pre

From January 1, 2012 through October 28, 2024, U.S. Bank received approximately 44,000 consumer complaints. Mortgage-related issues led all categories with over 9,700 complaints, followed by concerns about checking and savings accounts, credit and prepaid cards, and general banking services.

Graph and download economic data for Federal Government; Corporate Equities Issued by Commercial Banking Under the Federal Financial Stabilization Programs; Asset, Revaluation (BOGZ1FR313064173Q) from Q4 1946 to Q4 2024 about revaluation, issues, equity, federal, assets, banks, depository institutions, and USA.

The lowest asset growth rates of the U.S. banking industry was measured in the first quarter of 2011, when the industry saw an asset growth of negative 0.99 percent. The highest year-over-year growth rate, on the other hand, was measured in the fourth quarter of 2020, when COVID-19 was still causing concerns in many other industries. Only after the fourth quarter of 2020 did a sharp decline begin and did not even stop until the first quarter of 2023, which was the sixth consecutive quarter with a decreasing growth rate. In fact, the first quarter of 2023 was the worst-performing quarter of the U.S. banking industry - in terms of asset growth rate - in the last 10 years. Toward the end of 2023, and in early 2024, the asset growth rate increased notably, reaching 2.33 percent in the first quarter of 2024.

United States Net Issues: Flow: saar: OMP: CP: FB: US Chartered Commercial Banks data was reported at -3.004 USD bn in Mar 2018. This records a decrease from the previous number of -2.684 USD bn for Dec 2017. United States Net Issues: Flow: saar: OMP: CP: FB: US Chartered Commercial Banks data is updated quarterly, averaging 0.000 USD bn from Dec 1951 (Median) to Mar 2018, with 266 observations. The data reached an all-time high of 42.744 USD bn in Dec 2011 and a record low of -65.336 USD bn in Dec 2010. United States Net Issues: Flow: saar: OMP: CP: FB: US Chartered Commercial Banks data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.AB044: Funds by Instruments: Flows and Outstanding: Open Market Paper.

Graph and download economic data for Deposits, All Commercial Banks (DPSACBW027SBOG) from 1973-01-03 to 2025-03-12 about deposits, banks, depository institutions, and USA.

As of September 2024, JPMorgan Chase Bank led U.S. financial institutions with the highest Tier 1 capital, a key measure of a bank's financial strength. Tier 1 capital, comprising core capital including equity and disclosed reserves, is a crucial indicator of a bank's ability to absorb potential losses. JPMorgan Chase's Tier 1 capital surpassed 278 billion U.S. dollars in the third quarter of 2024, cementing its position as the most well-capitalized bank in the United States. Additionally, the banking giant boasted the highest Tier 1 capital ratio among its American peers, further underscoring its robust financial health. What is the Tier 1 capital ratio? The Tier 1 capital ratio is a critical metric for assessing a bank's resilience to financial stress. It's calculated by dividing a bank's core capital by its total risk-weighted assets, with regulatory requirements mandating a minimum ratio of six percent. As of 2023, the largest U.S. banks significantly exceeded this threshold. JPMorgan Chase led with a ratio of 16.6 percent, closely followed by Citibank at 15.02 percent, while Bank of America maintained a strong position at 13.5 percent. These ratios demonstrate the robust capital positions of major American financial institutions, indicating their strong capacity to withstand potential economic downturns or financial shocks. The leading banks in the U.S. The U.S. banking sector is dominated by four major institutions, commonly known as "the big four": JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. JPMorgan Chase stands out as the leader among these financial giants. It holds the top position across several key metrics, including market capitalization, total assets, investment banking revenue, and net income. This comprehensive leadership underscores JPMorgan Chase's dominant role in the American financial landscape and its significant influence on the global banking industry.

As of the fourth quarter of 2024, Goldman Sachs held the highest total capital ratio among the 15 largest banks in the United States, with a ratio of 18.85 percent. JPMorgan Chase followed closely, with a capital ratio of 18.53 percent.

The global community banking market, valued at $736.07 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 5.96% from 2025 to 2033. This expansion is driven by several key factors. The increasing demand for personalized financial services from small businesses and individuals in both metropolitan and rural areas fuels market growth. Technological advancements, particularly in digital banking and fintech solutions, are streamlining operations, enhancing customer experience, and driving efficiency gains for community banks. Furthermore, the growing adoption of mobile banking and online platforms is attracting a wider customer base, contributing to market expansion. However, increased regulatory scrutiny and compliance costs, coupled with competition from larger national and international banks, pose significant challenges to community banking institutions. The market is segmented geographically, encompassing North America (particularly the U.S. and Canada), APAC (China and India being significant players), Europe, South America, and the Middle East & Africa. Each region displays unique growth trajectories influenced by factors such as economic development, technological adoption rates, and regulatory environments. The sector outlook shows strong performance across small businesses, commercial real estate (CRE), and agriculture, reflecting the diversified customer base community banks serve. The competitive landscape is characterized by a mix of established regional players and smaller, localized banks. Key players such as JPMorgan Chase & Co., HSBC Holdings Plc, and Fiserv Inc. influence the market through their technological offerings and services. However, the success of smaller community banks hinges on their ability to leverage technology, personalize customer service, and establish strong local relationships. This necessitates strategic investments in digital infrastructure and the development of tailored financial solutions to cater to the specific needs of their communities. While the market demonstrates considerable potential, managing risks related to cybersecurity threats, evolving regulatory landscapes, and economic downturns remains crucial for sustained growth and profitability. The forecast period (2025-2033) will likely see a continued shift towards digital banking, requiring community banks to adapt and invest strategically to maintain their competitive edge and cater to evolving customer expectations.

United States Loan Officer Survey: IP: Large Banks: Not Important data was reported at 84.200 % in Apr 2018. This records an increase from the previous number of 64.700 % for Jan 2018. United States Loan Officer Survey: IP: Large Banks: Not Important data is updated quarterly, averaging 84.600 % from Jan 2008 (Median) to Apr 2018, with 39 observations. The data reached an all-time high of 100.000 % in Jan 2017 and a record low of 9.500 % in Oct 2010. United States Loan Officer Survey: IP: Large Banks: Not Important data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.KA042: Senior Loan Officer Opinion Survey: Lending Policies: Reason for Credit Easing. Senior Loan Officer Survey Questionnaire: If your bank has eased its credit standards or its terms for C&I loans or credit lines over the past three months, how important have been the improving of industry-specific problems for the change?

The “big four banks” in the United States are JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. These banks are not only the largest in the United States, but also rank among the top banks worldwide by market capitalization, with JPMorgan Chase being the most valuable bank in the world. Total assets of banks As the largest bank in the United States, JPMorgan Chase had total assets worth over 3.5 trillion U.S. dollars as of September 2024. Despite being the bank with the highest market capitalization in the world, the bank ranked only fifth in terms of total assets worldwide, while the top four positions were all held by Chinese banks. Stability in the banking sector in the United States In the second quarter of 2024, all of the "big four" banks in the United States maintained a common equity tier 1 (CET1) capital ratio significantly above the required minimum of 4.5 percent. JPMorgan Chase reported a CET1 ratio of 15.33 percent. Meanwhile, the highest CET1 ratio among U.S. banks during this period was 16.77 percent, achieved by TD Bank, the tenth-largest bank in the country in 2024.

United States Loan Officer Survey: WP: Large Banks: Not Important data was reported at 75.000 % in Apr 2018. This records an increase from the previous number of 71.400 % for Jan 2018. United States Loan Officer Survey: WP: Large Banks: Not Important data is updated quarterly, averaging 41.450 % from Jan 2008 (Median) to Apr 2018, with 40 observations. The data reached an all-time high of 100.000 % in Oct 2014 and a record low of 0.000 % in Jan 2014. United States Loan Officer Survey: WP: Large Banks: Not Important data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.KA041: Senior Loan Officer Opinion Survey: Lending Policies: Reason for Credit Tightening. Senior Loan Officer Survey Questionnaire: If your bank has tightened its credit standards or its terms for C&I loans or credit lines over the past three months, how important have been the worsening of industry-specific problems for the change?

Graph and download economic data for Net Issues of International Debt Securities for Issuers in Other Financial Corporations, All Maturities, Residence of Issuer in United States (DISCONTINUED) (IDSOFAMRINIUS) from Q1 1987 to Q2 2015 about issues, finance companies, companies, finance, maturity, financial, debt, residents, securities, Net, and USA.

Contains data from the World Bank's data portal covering the following topics which also exist as individual datasets on HDX: Agriculture and Rural Development, Aid Effectiveness, Economy and Growth, Education, Energy and Mining, Environment, Financial Sector, Health, Infrastructure, Social Protection and Labor, Poverty, Private Sector, Public Sector, Science and Technology, Social Development, Urban Development, Gender, Millenium development goals, Climate Change, External Debt, Trade.

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Merchant Banking Services Market Size 2024-2028

The merchant banking services market size is forecast to increase by USD 18.68 billion at a CAGR of 4.83% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing number of mergers and acquisitions (M&A) deals worldwide. This trend is particularly prominent In the Asia-Pacific region, where the growing number of unicorn startups presents ample opportunities for merchant banking services. However, this market is not without challenges. Data security concerns are at the forefront, as financial institutions and corporations increasingly rely on digital platforms for transactions and information exchange. Merchant banking services must adapt to these evolving needs by investing in cybersecurity measures and ensuring regulatory compliance. The financial services sector's digital transformation, driven by fintech and artificial intelligence (AI), further boosts market growth.
Merchant banking services are integral to financial institutions, high-net-worth individuals, investment firms, insurance companies, hedge funds, pension funds, global corporates, and charity organizations. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on providing value-added services, such as strategic advice, risk management, and innovative financial solutions. By staying abreast of regulatory changes and market trends, merchant banking institutions can differentiate themselves and build long-term relationships with clients.

What will be the Size of the Merchant Banking Services Market during the forecast period?

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The market encompasses a range of financial intermediary services provided to businesses, including asset management, corporate advice, credit syndication, loan syndication, portfolio management, and non-resident investment advice. This market caters to various entities, from small and medium enterprises to startups and multinational corporations. Mergers, acquisitions, business restructuring, and initial public offerings (IPOs) frequently necessitate the involvement of merchant banking services. The market's size is substantial, with continuous growth driven by increasing globalization, foreign direct investment, and the expanding role of financial services in international markets. Capital markets and investment climates play a significant role in market dynamics, influencing the demand for merchant banking services.
High-net-worth individuals and investment firms also contribute to the market's growth, as they seek expert advice and tailored financial solutions. Merchant banking services extend beyond traditional banking institutions, with non-banking players increasingly participating In the market. This competition intensifies the focus on innovation, customized offerings, and value-added services to maintain a competitive edge. Overall, the market is a dynamic and evolving landscape, shaped by the needs of businesses and the ever-changing financial services industry.

How is this Merchant Banking Services Industry segmented?

The merchant banking services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Business
  Individuals


Geography

  APAC

    China
    India


  Europe

    France
    UK


  North America

    US


  South America



  Middle East and Africa

By End-user Insights

The business segment is estimated to witness significant growth during the forecast period.

Merchant banking services cater to large corporate organizations, institutional investors, and small to medium-sized enterprises (SMEs). These financial institutions specialize in trade financing, fundraising, and loan services for business clients. Merchant banks significantly focus on bolstering the economic strength of businesses through various financial solutions. Notably, they exclusively serve business organizations and do not extend services to the general public. Key functions of merchant banking services include portfolio management, which entails the effective management of securities such as bonds, preferred shares, and stocks. Merchant banks offer advisory services to investors to help them make informed investment decisions.

Additionally, mergers and acquisitions, business restructuring, credit syndication, asset management, corporate advice, and loan syndication are other essential services provided by merchant banks. These services play a crucial role In the financial landscape, facilitating international markets, capital markets, investment climates, and foreign direct investment. With the advent of digital transformation technology, fintech providers have entered the market, o