Merchant banking services are specialized services offered by merchant banks to their clients while considering their financial needs in exchange for a reasonable payment in the form of a charge. Merchant banks are a specific type of financial institution that caters to the needs of major corporations by offering loans, financial advice, and fundraising services. Due to their expertise in commerce, these banks are skilled in interacting with powerful businesses and sectors.
A high rate of adoption by merchant banking services among HNIs and an increase in demand for foreign investments are boosting the growth of the global merchant banking services market. In addition, the increase in the use of digital transformation technology is positively impacting the growth of the merchant banking services market. However, the high cost of merchant banking services and increasing security concerns are hampering the merchant banking services market growth. On the contrary, rising Innovations in the Fintech Industry is expected to offer remunerative opportunities for the expansion of the merchant banking services market during the forecast period.
The merchant banking services market is segmented on the basis of type, provider, end user, and region. On the basis of type, the market is categorized into portfolio management, business restructuring, credit syndication and others. On the basis of providers, the market is fragmented into banks, and non-banking institutions. On the basis of the end user, the market is classified into businesses, and individuals. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the merchant banking services market are U.S. Capital advisors LLC, JPMORGAN CHASE & CO., Bank of America Corporation, DBS Bank Ltd., NIBL Ace Capital Limited, MORGAN STANLEY HSBC Bank USA, Citigroup Inc., The Goldman Sachs Group, Inc., and Wells Fargo & Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry
A high rate of adoption by merchant banking services among HNIs and an increase in demand for foreign investments are boosting the growth of the global merchant banking services market. In addition, the increase in the use of digital transformation technology is positively impacting the growth of the merchant banking services market. However, the high cost of merchant banking services and increasing security concerns are hampering the merchant banking services market growth. On the contrary, rising Innovations in the Fintech Industry is expected to offer remunerative opportunities for the expansion of the merchant banking services market during the forecast period.
The merchant banking services market is segmented on the basis of type, provider, end user, and region. On the basis of type, the market is categorized into portfolio management, business restructuring, credit syndication and others. On the basis of providers, the market is fragmented into banks, and non-banking institutions. On the basis of the end user, the market is classified into businesses, and individuals. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the merchant banking services market are U.S. Capital advisors LLC, JPMORGAN CHASE & CO., Bank of America Corporation, DBS Bank Ltd., NIBL Ace Capital Limited, MORGAN STANLEY HSBC Bank USA, Citigroup Inc., The Goldman Sachs Group, Inc., and Wells Fargo & Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global merchant banking services market forecast along with the current and future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on global merchant banking services market trend is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2023 to 2032 is provided to determine the market potential.
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- Product Life Cycles
- Market share analysis of players by products/segments
- Key player details (including location, contact details, supplier/vendor network etc. in excel format)
- Market share analysis of players at global/region/country level
- SWOT Analysis
- Volume Market Size and Forecast
Key Market Segments
By End User
- Businesses
- Individuals
By Type
- Portfolio management
- Business restructuring
- Credit syndication
- Others
By Provider
- Banks
- Non-Banking Institutions
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- JPMORGAN CHASE & CO.
- BANK OF AMERICA CORPORATION
- Citigroup Inc.
- Wells Fargo & Company
- U.S. Capital Advisors LLC
- DBS Bank Ltd.
- MORGAN STANLEY
- HSBC Bank USA
- The Goldman Sachs Group, Inc.
- NIBL Ace Capital Limited
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: MERCHANT BANKING SERVICES MARKET, BY TYPE
CHAPTER 5: MERCHANT BANKING SERVICES MARKET, BY PROVIDER
CHAPTER 6: MERCHANT BANKING SERVICES MARKET, BY END USER
CHAPTER 7: MERCHANT BANKING SERVICES MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the merchant banking services market was valued at $42.1 billion in 2022, and is estimated to reach $232.2 billion by 2032, growing at a CAGR of 18.9% from 2023 to 2032.Merchant banking services aid in maintaining communication with the bank or financial institution regarding the application process and tracking. They also help their clients fill out their paperwork and aid them in obtaining the most money from banks. They also observe all legal requirements set forth by banks or other lending organizations. Services for merchant banking have become more necessary over time. Therefore, in addition to the usual services, merchant banks have begun to offer specialized services like corporate counseling on mergers, employing staff, audits, and tax concerns.
Key factors driving the growth of the merchant banking services market include an high rate of adoption by merchant banking services among HNIs, increase in demand for foreign investments, and increase in use of digital transformation technology. Foreign investments are an ever-evolving industry, and opportunities emerge regularly. The industry is expected to see new opportunities for international investment as well as new types of alternatives to invest in. In addition, in recent years, it has branched out into an international market, creating new opportunities to use strategies that have already run their course in the U.S. For instance, according to the Investment Trends Monitor report that was published by the United Nations Conference on Trade and Development (UNCTAD) in January 2022, global foreign direct investment (FDI) volumes displayed a strong rebound in 2021. The values climbed to 77% to a predicted $1.65 trillion than $929 billion in 2020 and exceeding their level prior to COVID-19. The increase in investment flows to developing nations is positive. By far, the largest increase was seen in developed nations, with FDI reaching a projected $777 billion in 2021 - three times the abnormally low amount in 2020. Therefore, the growing flow of FDI is beneficial for the growth of the market.
The market also offers growth opportunities to the key players in the market. BFSI companies are increasing investment in machine learning and AI solutions to transform financial institute’s management for providing enhanced services to the end users and to automate the necessary solutions. In addition, with rising complexity and competition in the BFSI market, the demand for industry-specific solutions increased to meet the goals of the companies and AI-based financial solutions are helping Fintech and other industries to enhance their security and upsurge their revenue opportunity, which is driving the growth of the market. Furthermore, AI and machine learning can assist financial institutes at various stages of risk management process ranging from identifying risk exposure, measuring, and estimating, to assessing its effects. Moreover, increasing investments in AI and machine learning offer the potential to transform the area of automation for time-consuming, mundane processes, and offering a far more streamlined and personalized customer experience, which is enhancing the growth of the market. In addition, companies operating in merchant banking services are adopting AI driven technologies to sustain their position in the market. For instance, in December 2021, Wells Fargo launched Vantage system, a new digital banking platform for Commercial Banking and Corporate & Investment Banking clients. This feature provides enhanced features to drive a more personalized experience through artificial intelligence (AI) and machine learning (ML) that meet the financial needs of businesses in any stage of growth, which in turn is expected to provide lucrative opportunity for the growth of the market.
The merchant banking services market is segmented on the basis of type, provider, end user, and region. On the basis of type, the market is categorized into portfolio management, business restructuring, credit syndication and others. On the basis of providers, the market is fragmented into banks, and non-banking institutions. On the basis of the end user, the market is classified into businesses, and individuals. Region wise, it is analyzed across North America (the U.S., Canada), Europe (the UK, Germany, France, Spain, Italy, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa).
The key players profiled in the study include U.S. Capital advisors LLC, JPMORGAN CHASE & CO., Bank of America Corporation, DBS Bank Ltd., NIBL Ace Capital Limited, MORGAN STANLEY HSBC Bank USA, Citigroup Inc., the Goldman Sachs Group, Inc., and Wells Fargo & Company. The players in the market have been actively engaged in the adoption various strategies such as acquisition, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in December 2022, HSBC partnered with Extend, a virtual card and spend management platform. With this partnership, HSBC would provide Extend solutions to its commercial card customers across the U.S. to help companies control expenses with the management of virtual cards.
Key Market Insights
By type, the business restructuring segment was the highest revenue contributor to the market, and is estimated to reach $56.82 billion by 2032, with a CAGR of 17.7%. However, the credit syndication segment is estimated to be the fastest-growing segment with a CAGR of 22.6% during the forecast period.By providers, the banks segment dominated the global market and is estimated to reach $124.98 billion by 2032, with a CAGR of 17.3%. However, the non-banking Institutions segment is expected to be the fastest-growing segment with a CAGR 21.1% during the merchant banking services market forecast.
Based on region, North America was the highest revenue contributor, accounting for $15.48 billion in 2022, and is estimated to reach $71.23 billion by 2032, with a CAGR of 16.8%.
Companies Mentioned
- JPMORGAN CHASE & CO.
- BANK OF AMERICA CORPORATION
- Citigroup Inc.
- Wells Fargo & Company
- U.S. Capital Advisors LLC
- DBS Bank Ltd.
- MORGAN STANLEY
- HSBC Bank USA
- The Goldman Sachs Group, Inc.
- NIBL Ace Capital Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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