Financial Services - Industry - North America Market, Share and Trends 2023-2028

Summary of Financial Services

The North American financial services industry is mature and highly competitive, with the United States representing the largest market globally. Canada also comprises a significant portion of the regional market. Key trends include increasing adoption of digital and mobile solutions, consolidation among top players and evolving regulatory frameworks.

In the banking sector­ – top banks now rely heavily on digital channels – with mobile banking usage growing over 50% since 2018. Regional banks have consolidated, while credit unions and challenger banks gain share. Wealth management has seen a rise of robo-advisors and integration of AI tools. North America’s regional financial services market size grew from $3484 billion in 2023 to $5654.44 billion in 2029 at a compound annual growth rate (CAGR) of 8.38%.

Insurance sector leaders are prioritizing analytics and telematics for usage-based coverage. Payments continue rapid digitization, led by surging contactless and e-commerce transactions. Our analysis highlights the testing of strategic choices for banks in the face of multiple challenges, including— the influence of big tech companies and the need to modernize technology infrastructure. Other insights include— emphasize the industry’s transformation and the need for asset managers to capitalize on new opportunities.

Overall— the financial industry has seen declining foot traffic and branch closures, paired with rising digital account openings and online lending. Security remains a top concern. While COVID-19 accelerated digital trends, new hybrid models are emerging focused on high-tech, high-touch customer service. Strict regulations aim to build financial inclusion while protecting consumers.

Recent Trends and Insights

The pandemic necessitated rapid digitization. Over 90% of customers now use online or mobile banking. Financial apps saw record downloads while cash usage plunged. Digital channels are reducing costs and enabling remote— 24/7 access.

Banking saw record consolidation, now dominated by mega-banks worth $100+ billion. Mid-size banks united to gain scale and cut costs. Meanwhile— fintech disruptors and big tech firms like Amazon put pressure on incumbents.

Advanced analytics allow more tailored offerings. Bank of America’s virtual assistant Erica has over 25 million users. Wealthfront offers algorithm-driven investment management. Insurance telematics enable behavior-based premiums.

Fraud attempts are rampant, with billions lost annually in North America. Biometrics, encryption, AI monitoring tools and FIDO authentication aim to build trust and combat sophisticated cyber threats.

Regulated open banking is growing and is allowing consumers to easily share financial data. Embedded finance partnerships integrate financial services into non-finance brands.

Product Insights

Wells Fargo added integrated spending insights and financial health tools to mobile apps. Canadian banks launched digital ID verification and e-signatures for account opening. Features like peer-to-peer payments, budgeting, financial advice, and shopping portals create ecosystem convergence.

Morgan Stanley’s virtual assistant lets wealth clients interact by voice or text. RBC offers hybrid robo-advisor services combining algorithms with human input. JPMorgan Chase launched digital-first innovations like You Invest portfolio management trading platform.

Progressive’s Snapshot tracks driver behavior for personalized rates. Allstate offers mileage-based policies. Intact insurance provides home insurance premium cuts for smart home devices. On-demand insurance for single events or items is also growing.

PayPal enables US customers to buy, sell and hold crypto. Visa offers crypto-linked cards. Venmo allows users to buy Bitcoin. Goldman Sachs and NYDIG partnered on a Bitcoin-backed cash management account. Cryptocurrency adds new revenue streams while satisfying digital native preferences.

Uber’s partnership with Stripe, Lyft’s with Alipay and Airbnb’s with Adyen enable in-app payments. Apple’s Apple Card is deeply integrated with iPhone features. Amazon Cash lets users add funds at Western Union. Embedded payments drive loyalty, convenience and contextual commerce.

Key Companies

Some major players within this vast domain of industry are

• Berkshire Hathaway
• JPMorgan Chase
• Wells Fargo
• Bank of America
• Citi
• Goldman Sachs
• HSBC
• Morgan Stanley

Regional Analysis

The U.S. banking landscape is dominated by four mega banks – JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. Together they control over 40% of total banking assets. Mid-tier banks continue to consolidate, while smaller players carve niches. Credit unions and challenger banks are disrupting with digital-first models.

Wealth management is led by mammoth players like BlackRock, Vanguard and State Street Global Advisors. Robo-advisors like Betterment and Wealthfront are capturing younger investors with automated offerings. The insurance sector is also competitive, with incumbents like State Farm, Allstate and Progressive aiming to maintain market share.

Fintech adoption is high, with over 50% of digitally active adults utilizing services like PayPal, Square and Stripe. Cryptocurrency participation is above global averages. Open banking regulation is in early stages. The U.S. and Canada are major global hubs for financial technology innovation.

While the pandemic accelerated digital transformation, financial institutions still operate a hybrid model to serve customers. Branch and ATM numbers continue to incrementally decline but maintain an important presence. Call centers also retain significance for complex queries.

Regulation is intricate at both federal and state levels. Policy aims to spur competition and access while protecting consumers. Recently introduced Consumer Financial Protection Bureau rules target unfair practices. Both the U.S. and Canada are focusing on technology infrastructure modernization.

Looking ahead, the North American financial industry faces margin pressure from persistently low interest rates but also expanding opportunities in areas like embedded finance and blockchain applications. Personalization, automation and mobility will continue transforming the competitive landscape.

Market Segmentation

By Type:

• Ecommerce platforms and mobile apps
• AI-powered product recommendations and personalized shopping
• AR/VR for virtual try-ons and interactive displays
• IoT solutions for supply chain and inventory management

By End User:

• Retail chains, franchise brands
• Grocery stores and supermarkets
• Direct-to-consumer brands
• Online marketplaces

By Enterprise Size:

• Large retailers
• Small and mid-sized stores
• D2C startups

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of North America’s financial service market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.