HSBC Barclays and Standard Chartered Compete to Capture Growing US Commercial Banking Market

HSBC Barclays and Standard Chartered Compete to Capture Growing US Commercial Banking Market

British banking giants HSBC, Barclays, and Standard Chartered are intensifying efforts to capture a larger share of the expanding U.S. commercial banking market, as American businesses increasingly seek international expertise to support global growth. U.S. commercial banking revenues reached $429 billion in 2023, a significant increase from $310 billion in 2019, driven by a strong economy and rising interest rates, according to data from Boston Consulting Group (BCG). Despite holding a collective 7% of this market, European banks see promising growth potential, largely influenced by expanding global trade flows that are expected to continue regardless of the upcoming U.S. presidential election.

HSBC, with a significant footprint in Asia, views transatlantic trade as a major business driver. "The East-West trade corridor is essential to us due to our strength in Asia," said Stuart Tait, HSBC UK's head of commercial banking, adding that the bank’s main business volume corridor is the UK-U.S. market. Transactions by HSBC UK's business clients to the U.S. increased by 15% year-over-year to June 2024, while U.S. transactions to the UK grew by 5%. Rising merger and acquisition activity between the U.S. and UK has also spurred demand; U.S. companies are particularly attracted to the UK’s technology and research sectors, with valuations seen as favorable.

In the first half of 2024, HSBC saw a 71% increase in U.S. firms acquiring or establishing subsidiaries in the UK, with a 45% rise in UK-based clients doing the same in the U.S., highlighting robust cross-border growth. "Banks like HSBC can leverage specific ‘trade corridors’ with the U.S. to expand their share of commercial banking services,” explained Amit Sukhija, a senior manager at BCG.

The shift comes as British banks reassess their European and Asian strategies. HSBC and Standard Chartered have both faced challenges in their Asian operations, particularly in China, due to losses from the country’s troubled real estate sector. As U.S. corporate demand for international services grows, British banks are focusing on transatlantic opportunities to diversify and strengthen their commercial banking portfolios, positioning themselves for sustained growth.