Financial institutions are companies that perform important financial and monetary functions such as lending, depositing, investing, and wealth management. The primary financial institutions include banks, trust companies, insurance companies, brokerage firms, and investment dealers. A strong and stable system of financial institutions, particularly banks, is crucial because their activities can influence economic growth. The financial crisis in 2008 proved that a weak banking system can provoke a global economic crisis.
The role of central banks is especially important in terms of economic stability. During the economic crisis caused by the coronavirus pandemic in 2020, central banks all over the world provided quantitative easing measures to help stimulate the economy. In 2022 and 2023, the spotlight shifted to key interest rates, which were raised frequently in response to alarmingly increasing inflation.
Market capitalization of the 100 largest banks worldwide from 1st quarter 2016 to 1st quarter 2024 (in trillion euros)
Further details: Visit original statistic Market capitalization of the 100 largest banks worldwide from 1st quarter 2016 to 1st quarter 2024 (in trillion euros)
The market capitalization of major global banks plummeted in 2020 due to the COVID-19 pandemic's economic fallout, with some banks experiencing drops of over a third, and others nearly halving in value. By 2021, the market capitalization rebounded and remained stable through 2022, surpassing pre-pandemic levels. This trend continued in 2023, reaching a peak in early 2024 for the top 100 banks.
Largest banks worldwide by market capitalizationNumber of fintechs worldwide from 2018 to 2024, by region
Further details: Visit original statistic Number of fintechs worldwide from 2018 to 2024, by region
Financial institutions encompass a diverse range of market segments, each serving distinct functions within the financial ecosystem. These segments typically include banking, insurance, asset management, brokerage, and fintech. Recent years have seen a rapid decline in the number of traditional banks, while fintech has evolved from a niche and elusive industry trend into a transformative force in the global financial landscape.
Number of FDIC-insured commercial banks in the U.S.Number of digital banks worldwide as of January 2024, by region
Further details: Visit original statistic Number of digital banks worldwide as of January 2024, by region
With the increasing popularity of online banking, traditional retail banks face competition from online counterparts. Online banks operate solely in digital form, offering customers easy access through apps, personalized features, and low fees. As of 2024, Europe boasted the highest number of challenger banks globally, while the Middle East and Africa had the lowest.
Digital banks worldwideLargest banks worldwide as of December 2023, by market capitalization (in billion U.S. dollars)
Further details: Visit original statistic Largest banks worldwide as of December 2023, by market capitalization (in billion U.S. dollars)
The world’s largest bank by market capitalization is JPMorgan Chase. The publicly listed commercial bank's market cap exceeded 490 billion U.S. dollars in 2023. The next two largest banks are Bank of America and Industrial & Commercial Bank of China, each with market capitalizations surpassing 200 billion U.S. dollars.
Banking industry in ChinaEstimated value of the financial sector's artificial intelligence (AI) spending worldwide in 2023, with forecasts from 2024 to 2027 (in billion U.S. dollars)
With the renewed interest in AI, financial institutions emerge as leaders in AI integration, exhibiting one of the highest adoption rates across industries. This is primarily attributed to the strong adoption of traditional AI, such as machine learning (ML), which has been used widely in the sector since the late 2000s. Generative AI, while currently less commonly used, will likely take hold in the industry in the coming years.
Artificial intelligence in finance
The financial institutions section presents statistics and reports on establishments offering financial services. These establishments encompass central banks, retail and commercial banks, online banks, investment institutions, and asset management companies, among others.
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