Commercial Banking Market to Grow with a CAGR of 11.35% Globally through 2028
Rising demand for consumer credit and increase in
business activity and demand for commercial banking services are factors
driving the global commercial banking market in the forecast period 2024-2028.
According to TechSci Research report, “Global Commercial
Banking Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Commercial Banking Market stood at USD
2580.12 billion in 2022 and is anticipated to grow with a CAGR of 11.35% in the
forecast period, 2024-2028. Global commercial banking is the cornerstone of the
financial industry, providing essential financial services to businesses,
individuals, and governments worldwide. These services include deposit-taking,
lending, trade finance, and treasury management. Commercial banks play a
pivotal role in facilitating economic growth by connecting borrowers with
savers and managing financial transactions on a global scale. The sector is
marked by fierce competition, rapid technological advancements, evolving
regulations, and the rise of fintech innovation. Navigating these dynamics
while ensuring financial stability and meeting customer demands is the ongoing
challenge for global commercial banks, making it a critical component of the
global financial system. One of the
fundamental functions of global commercial banking is the acceptance of
deposits. Customers, ranging from individuals with personal savings accounts to
multinational corporations with complex cash management needs, entrust their
funds to these banks. In return, banks offer a safe haven for these deposits
while providing a range of services that allow customers to access and manage
their funds efficiently. Simultaneously, commercial banks are major providers
of credit to various sectors of the economy. They offer loans to businesses for
expansion, working capital, and investment in new projects. Individuals turn to
banks for mortgages, auto loans, and personal lines of credit. By extending
credit, banks stimulate economic activity and play a pivotal role in fostering
growth and job creation. Trade finance is another vital service provided by
global commercial banks. In a world where businesses often source materials and
sell products across international borders, banks facilitate global trade
through services like letters of credit, trade finance loans, and export
financing. These instruments provide financial guarantees and working capital
to support the smooth flow of goods and services across borders, reducing risks
for both buyers and sellers. Foreign exchange (forex) services are also an
integral part of global commercial banking. In an interconnected global
economy, businesses and individuals frequently engage in cross-border
transactions and investments, necessitating the exchange of currencies.
Commercial banks offer forex services to help clients navigate the complexities
of currency markets, manage currency risk, and execute transactions
efficiently.
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Treasury management services are yet another crucial
offering. Businesses, especially multinational corporations, require advanced
treasury solutions to optimize their liquidity, manage cash flows, and mitigate
financial risks. Banks provide treasury management services that encompass cash
concentration, disbursement, liquidity forecasting, and risk management
strategies to support their clients' financial needs. Technology is a transformative force in the global
commercial banking sector. The industry has witnessed a significant shift
toward digital banking as customers increasingly demand convenient, online, and
mobile access to their accounts and services. This trend has accelerated due to
the COVID-19 pandemic, which underscored the importance of remote banking
capabilities. Banks have responded with investments in digital infrastructure,
user-friendly mobile apps, and online banking platforms. Furthermore, they have
embraced innovations such as artificial intelligence (AI), machine learning,
and data analytics to improve customer experiences, personalize services, and
enhance risk management. These technologies allow banks to gain deeper insights
into customer behavior, enabling them to offer tailored products and services. The
global commercial banking market is segmented into product, application,
regional distribution, and company.
Based
on application, the market is segmented into healthcare, construction,
transportation and logistics, media and entertainment, and others. Media and entertainment represent a growing segment in
global commercial banking. This sector encompasses a wide range of businesses,
from film and television production to streaming services and advertising
agencies. As digitalization continues to transform the industry, banks are
increasingly providing specialized financial solutions to media and
entertainment companies, including capital financing, mergers and acquisitions,
and cash management services. With the proliferation of content platforms and
evolving business models, commercial banks play a vital role in supporting the
industry's financial needs, while also navigating the unique challenges posed
by intellectual property rights, content licensing, and changing consumer
preferences.
Major companies operating in Global Commercial
Banking Market are:
- BNP Paribas
- Bank of America
- Wells Fargo
- Bank of China
- J.P. Morgan Chase
- Citigroup Inc.
- Agriculture Bank of China
- Industrial and Commercial Bank of China
- HSBC Holdings PLC
- China Construction Bank
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“Global commercial banking is a dynamic sector at the
heart of the financial industry, encompassing diverse institutions that provide
crucial financial services to businesses and individuals worldwide. This sector
is driven by various factors, including economic conditions, technological
advancements, regulatory changes, and customer expectations. Key trends include
digital transformation, ESG integration, data analytics, and open banking.
However, challenges like regulatory complexity, cybersecurity threats,
low-interest-rate environments, and fintech disruption persist. Navigating
these trends and challenges is imperative for commercial banks to remain
competitive, adapt to changing customer needs, and contribute to the stability
and growth of the global economy,” said Mr. Karan Chechi, Research Director
with TechSci Research, a research-based management consulting firm.
“Commercial
Banking Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Product (Commercial Lending, Treasury Management,
Project Finance, Syndicated Loans, Capital Market, Others), By Application (Healthcare, Construction,
Transportation And Logistics, Media And Entertainment, Others), By Region,
Competition”, has evaluated the future growth potential of global Commercial
Banking market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the global Commercial
Banking market.
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