A bank is a licensed financial institution that is authorized to accept checks, deposits, savings, and make loans. Banks have been introduced to the world since the 14th century. It is a safe place where people can store their cash and in return, they provide loans for business ventures and personal purchases from the cash that is deposited to them.
Banks are regulated by the national government. In the U.S., they may be regulated by individual states. According to a report by Federal Deposit Insurance Corporation in February 2014, there were 6799 FDIC-insured commercial banks in the USA. The central bank of the USA is the Federal Reserve Bank which was established in 1913.
Types of Banks in the United States of America
There are many different types of banks including retail banks, commercial banks, investment banks, etc., here we will discuss four common types of banks in the United States.
The services of retail banks target the general public. They have many branch offices and main offices for the easy access of their customers. They offer a wide range of services to their clients such as loan and mortgage services, checking and savings accounts, financing automobiles, and other short-term loans. Some larger retail banks also offer personal banking and wealth management. TD Bank and Citibank are examples of retail banks in the United States.
These commercial banks usually target business clients whether they are small business owners or own large corporate businesses. They offer business banking and also provide cash management, credit services, employer services, and real estate services. Two famous commercial banks in the United States are JPMorgan Chase and Bank of America.
Credit unions are non-profit institutions and are owned by their members. They offer the usual banking services same as those provides by the retail banks and commercial banks. The only difference between them is that credit unions target individuals associated with a certain group such as people belonging to a certain area or people who are members of the military. Some prominent credit unions in the United States include Alliant Credit Union, Navy Federal Credit Union, and Bethpage Federal Credit Union.
Savings and Loans Associations
These banks are also known as ”thrift banks.” Their target is the people who require home financing. They offer mortgages, refinance loans, and other home loans using deposited savings. They also offer lending services to businesses and different type of savings accounts. The two popular savings and loan associations in the United States are Capital One 360 and Synchrony Bank.
The Top 5 Banks in the United States
The following table contains the list of the top 5 banks in the USA along with their total assets.
|Rank||Bank Name||Total Assets|
|1||JPMorgan Chase||$3.27 trillion|
|2||Bank of America||$2.52 trillion|
|4||Wells Fargo||$1.69 trillion|
|5||U.S. Bancorp||$590.46 billion|
JP Morgan Chase & Co.
JP Morgan Chase & Co. is one of the largest and top-rated banks in the USA, it is a result of a merger of several banking companies and societies in 1996. Its headquarters is in New York. JP Morgan Chase & Co is a multinational banking and financial service provider. The bank group assets are worth $3.27 trillion as of 2023. JP Morgan Chase & Co is ranked in the top ten for all Global Investment Banks. The gigantic bank operates in over 100 countries with more than 228,000 people working as employees. JP Morgan Chase & Co provides business and financial services to millions of customers, small businesses banks, and many prominent corporations, institutions, and governments.
Bank of America
The Bank of America (BOA) was established on 17th October 1904 by Amadeo Giannini. It was first known as the Bank of Italy. As of 2023, the Bank of America has assets worth $2.52 trillion, making it the 2nd largest bank in the United States. Bank of America is multinational banking and financial service company in the USA and is headquartered in Charlotte, North Carolina. BOA is 2nd largest banking system in the USA with 5100 banking outlets, more than 16,300 ATMs, and more than 150,939 employees all across the globe. They have more than 67 million consumers worldwide. In 2022, Bank of America made an industry trend by decreasing its overdraft fee and eliminating its nonsufficient funds (NSF) fee.
Citigroup was established on 16th June 1812. Its headquarters is in Manhattan, New York. It is the consumer division of the financial and banking service multinational Citigroup. Citibank has 983 bank branches in North America and more than 1800 branches outside the country. Their retail banking division has more than 673 locations in the United States. There are 65,000 fee-free ATMs of Citigroup. Its major business groups are market insurance, transactions, credit cards, and an online division that covers more than 15 million users. The bank has an estimated assets of $1.72 trillion, making it the 3rd largest bank in the United States.
According to Kiplinger’s Personal Finance, Citibank has been granted the title of “Best Bank for High-Net-Worth Families” for four years in a row. Citigroup offers a Citigold Package for their special customers who maintain $200,000 in their investment, retirement, or deposit account.
Wells Fargo was established on 18th March 1852 by Henry Wells and William Fargo. It is one of the oldest banking systems in the USA and 4th largest banking institution in the USA. Wells Fargo’s headquarter is in San Francisco, California. It is the world’s largest bank in terms of market capitalization with an asset base of $1.69 trillion.
This bank offers financial services such as savings apps and mobile banking apps to target millennials. ”Pay with Wells Fargo” is a mobile banking service that allows its users to access their most used payment features before even signing into the app. Wells Fargo has made it to the top 5 banks because it entered the contactless payment market. This benefit Wells Fargo as more than 78% of top US merchants accept contactless transactions and 44% of US consumers prefer contactless payments.
U.S. Bancorp was established in 1863 as the First National Bank of Cincinnati. The headquarters of U.S. Bancorp is in Minneapolis. It is the parent company of US Bank. It is the 5th largest bank in the USA according to its total assets. Their total assets as of 2023 are $590.46 billion. It is known for its comprehensive branch network, investment, and its efforts to compete with huge fintech companies. According to the chief financial officer, Terry Dolan, the bank’s main goal is to improve its technology to compete with leading fintech companies such as Facebook, Amazon, Google, and Apple.
Other Top Banks in the United States
The following table contains a list of some other famous banks in the USA. They are ranked according to their total assets as of 2023.
|Rank||Bank Name||Total Assets|
|6||Truist Bank||$564.84 billion|
|7||PNC Financial Services||$556.31 billion|
|8||Goldman Sachs||$490.80 billion|
|9||Capital One Financial||$469.43 billion|
|10||TD Group US Holdings||$401.25 billion|
|11||Bank of New York Mellon||$341.46 billion|
|12||State Street||$287.07 billion|
|13||BMO Harris||$265.45 billion|
|14||First Republic Bank||$232.94 billion|
|15||Citizens Financial||$221.96 billion|
Banks are financial institutions owned by the national government. They offer different financial services such as accepting checks, savings, and deposits. They also offer to provide loans and interest on the money that is deposited to them. There are many different types of banks in the United States such as retail banks, commercial banks, etc. Different types of banks offer different services and target different clients. Banks are usually ranked based on their total assets, the top five banks in the United States are JPMorgan Chase ($3.27 trillion), Bank of America ($2.52 trillion), Citigroup ($1.72 trillion), Wells Fargo ($1.69 trillion), and U.S. Bancorp ($590.46 billion).
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