The US banking system has seen some major shifts over the past 40 years, from mortgage booms to bust cycles. The top five banks change positions every year, and we’ll discuss these major institutions in this article. In particular, we’ll discuss Bank of America Corporation, Citigroup Inc, JPMorgan Chase & Co, and U.S. Bancorp. Which of these four banks is the best? Which of these banks has the best reputation for providing a high-quality banking experience?
Capital One Financial
Capital One Financial is one of the largest banks in the USA, serving millions of customers across diverse industries through call centers, ATMs, and branch locations. The bank has an impressive list of awards and honors, including the World Bank’s “Best Places to Work.”
Founded in 1988, Capital One Financial Corp. operates branches in the States, Canada, and the United Kingdom. Its headquarters are located in McLean, Virginia. Its retail banking arm has a long history, having acquired numerous financial companies. Capital One is one of the nation’s largest credit card companies, issuing both Visa and Mastercards. Capital One offers a variety of rewards cards.
The company’s portfolio is comprised of credit card exposures, consumer financing, and commercial banking. Its home loan portfolio was a relatively small part of its total assets until mid-2018, when it divested from the business due to low profit margins. Given the historically low interest rate environment, this may have been a good strategic move for the company. Its growth is slower than the average for the USA banking industry.
PNC Financial Services
The overall financial performance of PNC depends on the health of the economy and the financial conditions of consumers and businesses. Declining consumer sentiment can lead to lower business activity, and lower demand for PNC products. Economic downturns can also affect the ability of borrowers to repay loans. PNC is well-positioned to handle deteriorating economic conditions. Therefore, it is one of the top 10 banks in the USA, despite the recent market turmoil.
PNC Financial Services is a leading US bank that offers its clients specialized perks and develops innovative products. It began offering mobile payment options for its Visa commercial card holders in 2017, and in 2019 it piloted a new method for periodic refresh of card verification values. Fraudsters can guess three-digit CVV codes, but periodic refresh makes stolen data less valuable. This way, PNC has made its clients one of the top 10 banks in the USA.
The US banking system is dominated by the top four banks, JPMorgan Chase, Bank of America, and Citigroup. These four companies have assets totaling $8.9 trillion and employ over 265,000 people. The top four banks collectively account for 50% of all banking assets in the USA. They all offer a wide range of banking services, from personal banking to commercial and investment banking.
Although JPMorgan Chase is one of the top ten banks in the USA, it has not always been a perfect credit card issuer. It has been involved in numerous financial scandals, most notably those related to the subprime mortgage crisis. JPMorgan Chase is known for salvaging the Washington Mutual Bank and Bear Stearns during the subprime mortgage meltdown and the subsequent financial crisis.
With nearly $4 trillion in assets, JPMorgan Chase & Co. is no longer a household name, but that doesn’t mean they aren’t among the top banks in the country. Wells Fargo climbed one spot in the rankings this year, and the bank’s consent order was finally lifted. Nevertheless, the rankings are a good indication of the future of the industry.
As one of the largest banks in the USA, Wells Fargo owes its success to its ability to expand its reach through a network of bank branches. The company has 4,700 locations across the country, and has successfully targeted new customer segments, such as small business owners. The company also has minimal participation in investment and trading operations. In addition to retail and commercial banking, the company has mortgage lending and other lending activities.
Other notable banks in the US include Citibank, Home Bancshares, and Capital One. Capital One started out as a credit card company in 1994, and today has assets of $425 billion. The bank was ranked No. 9 in the list last year, and climbed 37 spots from the previous year. In terms of return on tangible common equity, assets, and net interest margin, the bank is the best.