Five Major Competitors in the U.S. Banking Industry

Five major competitors in the U.S. banking industry

I chose to examine the domestic banking industry in the United States because Wells Fargo is one of the major players and trendsetters in the entire industry. The five major competitors in the U.S. banking industry in terms of market share (in the case in terms of deposits) are Bank of America, Wells Fargo, JPMorgan Chase, Citibank, and PNC Bank. Globally, large foreign banks such as HSBC and Barclays are two of the largest companies in the world and U.S. banks definitely should monitor their activities. I have included a pie chart below to reference the market share of each competitor:

Graph 1

As you can see from the graph, the Bank of America has the largest percentage of deposits among the top 5 U.S. Bankers at 32% while PNC Bank has only 7% of the deposits owned by all of the top 5 banks.

Current trends in the U.S. banking industry

Banks within the U.S. are dealing with several trends that have greatly affected their operating activities and vision strategies. Since America is a fast-paced society compared to many of its counterparts, many consumers want their products and services as soon as possible. Banks have had to make major technological upgrades in regards to online banking in order to offer clients a wide array of features along with timeliness and security.

If banks chose not to apply these technological upgrades, they risk losing a significant amount of market share and risk failing to uphold online banking regulations due to a lack of security. Therefore, future trends show that even more technological upgrades will take place in order to make transactions simpler, safer and more reliable for clients on the internet, at a branch or at an ATM.

Another major trend in the banking industry is the end of major investment only banks. Since consumers have become accustomed to making investments on the Internet, firms such as Morgan Stanley and Goldman Sachs have been forced to switch their...