Commercial Banking Market - Size, Share, and Forecast 2031

The commercial banking market is anticipated to expand at a CAGR of 17.8 % from 2023 to 2031. Increase in commercial banks to drive the commercial banking market. The increasing digitization in banking sector is fuelling the market growth.

Commercial Banking Market Analysis 

The global expansion of commercial banks has been fueled by the development of the digital economy and the actions of supporting regulators. Despite being reluctant to respond at first, incumbents are now stepping up their efforts to take advantage of the global increase in demand for commercial banking. Furthermore, as economies expand their borders, increase infrastructure spending, and expand the range of products they can provide, loans are predicted to rise. Furthermore, after two years of the COVID-19 epidemic, economies are expected to open up for trade and tourism, which will boost loan growth and increase bank profitability. Furthermore, commercial banks are incorporating technology to improve their offerings. In April 2022, Intellect Global Transaction Banking (iGTB), a transaction banking platform owned by Intellect Design Arena Limited, declared its intention to incorporate Microsoft Cloud.

Commercial Banking Industry Overview

• Any financial organization that handles the public's deposit and withdrawal of funds, as well as the granting of loans for investments, is known as a commercial bank. These banks are for-profit companies that operate solely to earn a profit. Lending and borrowing are a commercial bank's two main features. After receiving deposits, the bank disburses funds to different projects in an effort to generate interest (profit). The borrowing rate is the interest rate that a bank charges its depositors; the lending rate is the interest rate at which a bank extends a loan.
• Through the use of checks, bank drafts, and internet transfers, commercial banks enable business transactions. In addition, commercial banks facilitate business transactions through their provision of digital payment services. Additionally, small to mid-sized enterprises and people can obtain basic financial services from commercial banks. Moreover, it boosts international trade between different nations. Thus, these are a few of the elements driving the market growth.

Strategic Insights

Commercial Banking Market Drivers and Opportunities

 

Increase In Commercial Banks to Drive the Commercial Banking Market

• By streamlining foreign exchange transactions, commercial banks promote global trade and tourism. They support their clients' international financial transactions. Additionally, they support global trade by giving travelers' checks to foreign visitors and letters of credit to importers. The modern economy has no borders, thanks to globalization. International debt settlement is a constant requirement. Commercial international banks facilitate international money transfers, currency exchanges, document and payment transfers, cash remittances, and lending to governments, institutions, and other international organizations. Commercial banks have an unbounded reach and contribute to the globalization of society. As a result, this is a key driver of the expansion of the commercial banking market growth.

Commercial Banking Market Report Segmentation Analysis

• Based on product, the segment with the biggest increase in 2023 was commercial lending. This is explained by the fact that commercial financing options, a key factor in the industry, provide flexible long-term credit. Additionally, it is anticipated that the industry will witness a rise in the number of FinTech companies and digital lending organizations working together to collect payments. Additionally, the attention that local non-financial organizations are paying to commercial financing is one of the most important indications of the development.

Commercial Banking Market Share Analysis By Geography

The scope of the commercial banking market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific (APAC) is experiencing rapid growth and is anticipated to hold a significant commercial banking market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth.

Commercial Banking Market Report Scope

The "Commercial Banking Market Forecast" was carried out based on products, applications, and geography. In terms of providers, the market is segmented into syndicated loans, capital markets, commercial lending treasury management, project finance, and others. Based on applications, the commercial banking market is segmented into healthcare, construction, transportation and logistics, media and entertainment, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

 

Commercial Banking Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the commercial banking market. A few recent key market developments are listed below: 

• In April 2022:Intellect Global Transaction Banking (iGTB), the world’s first complete Global Transaction Banking Platform from Intellect Design Arena Limited, announced to integration of Microsoft Cloud for Financial Services to accelerate cloud adoption and digital transformation initiatives of corporate banks.

[Source: Intellect Global Transaction Banking, Company Website]

Commercial Banking Market Report Coverage & Deliverables

The market report “Commercial Banking Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.

REGIONAL FRAMEWORK

Commercial Banking Market Report Analysis

MARKET PLAYERS

Commercial Banking Report Scope