Banks & Credit Unions Industry Profile

Companies in this industry accept deposits and make commercial, industrial, and consumer loans. Major companies include Bank of America, Citibank, JPMorgan Chase, Navy Federal Credit Union, and Wells Fargo (all based in the US), as well as Banco Santander (Spain), China Construction Bank and Industrial and Commercial Bank of China (both based in China), and HSBC Holdings (UK).

The global banking revenue improves by 60% in 2022, according to consulting firm McKinsey & Company. The company's profitability reached and grew by $345 billion.

The combined industry includes about 110,000 establishments with an annual average revenue of $530 billion.

COMPETITIVE LANDSCAPE

Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. While smaller banks and credit unions can compete successfully in segments where customer service or knowledge of the local market is more important, big banks are becoming increasingly dominant.

The US commercial banking segment is concentrated: the 50 largest firms generate about 70% of revenue.

A decade after the financial crisis of the late-2000s finds the global banking industry on firmer footing, although the recovery hasn't been uniform across all regions. Assets at the US banks reached about $22.3 trillion at the end of 2022, according to ...