Private Banking Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD5406Revenue
$95.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
101k
Businesses
7,401
Wages
$XX.Xbn
Private Banking Services in the US industry analysis
Private banks have grown recently as wealth managers have capitalized on the growing number of millionaires in emerging markets. The relative strength of the US economy has propelled private banks, as wealthy individuals worldwide have sought to park their wealth in secure assets like urban real estate. Even amid the pandemic in 2020, market accumulation spurred growth. Overall, the need for private banking services has increased as the global number of high-net-worth and ultra-high-net-worth individuals has grown. Industry-wide revenue has been growing at a CAGR of 5.0% to $95.9 billion over the past five years, including an expected jump of 3.6% in 2024 alone.
Trends and Insights
- Assets under management increased despite the pandemic. Investor uncertainty and a rebound in capital markets following the initial dip in 2020 led to increased assets under management, but lower interest rates hindered profit growth.
- Volatility in equity markets limited the number of ultra-high-net-worth individuals. The Russia-Ukraine conflict and interest rate hikes led to considerable volatility in equity markets, limiting the number of ultra-high-net-worth individuals in 2022.
- Proximity to downstream markets is crucial. The population's wealth and the number of financial institutions in a particular region encourage private banks to establish.
- Private banks primarily compete based on reputation and fees. Private banks must provide highly personalized services and uphold professional standards that place the client's needs before those of the company.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.0 % over the past five years, to reach an estimated $95.9bn in 2024.
Trends and Insights
The outbreak of the pandemic had mixed effects
- The pandemic caused volatility in capital markets in 2020, which led to a surge in global investor uncertainty, spurring growth for private banks as consumers sought professionals to manage their money.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
High-interest rates will have mixed effects
- Higher interest rates will subdue growth for private banks as limited market appreciation will hinder growth in assets under management and lower trading volumes reducing growth from management fees.
Biggest companies in the Private Banking Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Morgan Stanley | 18,831.5 | 4,439.4 | 23.6 | |
Jpmorgan Chase & Co | 5,007.0 | 1,423.1 | 28.4 | |
Bank Of America Corporation | 3,335.7 | 703.1 | 21.1 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cash and equivalent assets, Fixed income assets and Equities. Cash and equivalent assets is the largest segment of the Private Banking Services in the US.
Trends and Insights
Strong growth in the S&P 500 attracts investment
- Investment in equities by private banks includes large-cap stocks (market capitalization of at least $10.0 billion) and small- and mid-cap stocks. The equities segment comprises over one half of industry revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Commercial Banking in the US
- Securities Brokering in the US
- Portfolio Management in the US
- Financial Planning & Advice in the US
International industries
- Global Commercial Banks
- Commercial Banking in Canada
- National and Regional Commercial Banks in Australia
- Foreign Banks in Australia
- Banking in New Zealand
Table of Contents
About this industry
Industry definition
The Private Banking Services industry comprises banking institutions that actively manage wealth for clients with investable assets exceeding $1.0 million. Private banks have the ability to make investment decisions and generate revenue through fees that are based on asset management, portfolio performance and specialty wealth-advisory services.
What's included in this industry?
Assisting high-net-worth clients with financial needsProviding specialty wealth-advisory servicesActively managing client portfoliosEquity asset managementFixed-income asset managementAlternative asset managementCompanies
Morgan StanleyJpmorgan Chase & CoBank Of America CorporationPurchase this report to view all 5 major companies in this industry.
Related Terms
MARKET CAPITALIZATIONCOMMERCIAL PAPERASSETS UNDER MANAGEMENT (AUM)HIGH-NET-WORTH CLIENTULTRA-HIGH-NET-WORTH CLIENTIndustry Code
NAICS 52392 - Private Banking Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Assets under management increased despite the pandemic. Investor uncertainty and a rebound in capital markets following the initial dip in 2020 led to increased assets under ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Volatility in equity markets limited the number of ultra-high-net-worth individuals. The Russia-Ukraine conflict and interest rate hikes led to considerable volatility in equ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Proximity to downstream markets is crucial. The population's wealth and the number of financial institutions in a particular region encourage private banks to establish.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Private banks primarily compete based on reputation and fees. Private banks must provide highly personalized services and uphold professional standards that place the client'...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Just two companies have amassed 5.0% of the market. Morgan Stanley and JP Morgan have accumulated their market share by having more assets under management than other private...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Morgan Stanley's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Jpmorgan Chase & Co's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bank Of America Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Morgan Stanley, and factors influencing its performance in the industry
- Description and key data for Jpmorgan Chase & Co, and factors influencing its performance in the industry
- Description and key data for Bank Of America Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Private bankers are highly regulated. The US Securities and Exchange Commission regulates private banks under numerous laws like the Investment Company Act, the Securities Ac...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Private banks’ profit is high. Considerable market appreciation has driven an expansion in assets under management and higher interest rates have enabled private banks to enj...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Private Banking Services in the US industry in United States in 2024?
The market size of the Private Banking Services in the US industry in United States is $95.9bn in 2024.
How many businesses are there in the Private Banking Services in the US industry in 2024?
There are 7,401 businesses in the Private Banking Services in the US industry in United States, which has grown at a CAGR of 5.0 % between 2019 and 2024.
Has the Private Banking Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Private Banking Services in the US industry in United States has been growing at a CAGR of 5.0 % between 2019 and 2024.
What is the forecast growth of the Private Banking Services in the US industry in United States over the next 5 years?
Over the next five years, the Private Banking Services in the US industry in United States is expected to grow.
What are the biggest companies in the Private Banking Services in the US market in United States?
The biggest companies operating in the Private Banking Services market in United States are Morgan Stanley, Jpmorgan Chase & Co and Bank Of America Corporation
What does the Private Banking Services in the US in United States include?
Assisting high-net-worth clients with financial needs and Providing specialty wealth-advisory services are part of the Private Banking Services in the US industry.
Which companies have the highest market share in the Private Banking Services in the US in United States?
The company holding the most market share in United States is Morgan Stanley.
How competitive is the Private Banking Services in the US industry in United States?
The level of competition is high and increasing in the Private Banking Services in the US industry in United States.
