Major Players in U.S Financial Industry

Companies in the U.S financial sectors facilitate flow of money by providing services which include accounting services, bank and credit unions, consulting services, insurance agencies, investment banking, professional services, security brokers and venture capital.

There are about 90,000 firms in U.S working for accounting and tax preparation industry with combined annual revenue of about $65 billion. Major companies in accounting services include Price Water House Coopers, Deloitte Touche Tohmatsu, Ernst & Young, KPMG and H&R Block.

Whereas, the U.S banking system includes about 8,000 commercial banks, 1,400 savings banks, and 10,000 credit unions, with combined annual revenue of more than $600 billion. The major players in commercial banks include Bank of America, JPMorgan Chase, Citibank, and Wachovia. The industry is concentrated with about 50 largest banks spreading more than 60% of the financial market. The credit union segment remains highly fragmented and the commercial banks account for about 80% of industry revenue, savings banks for 14%, and credit unions for 6%.

About 10,000 firms in the U.S provide financial planning and investment advice, with combined annual revenue of $15 billion. Major companies include Morningstar, Value Line, and units of financial services companies. With insurance agencies, US generate annual revenue of $85 billion from about 1,30,000 insurance offices. The Major insurance companies include March & McLennan, Arthur J. Gallagher, and Aon.

Investment banking is covered with the largest 50 firms holding 90% of the market comprised of less than 2000 companies earning an annual revenue of about $110 billion. The major key competitors include Morgan Stanley, Goldman Sachs, and Lehman Brothers. And the securities brokerage industry comprises of less than 4000 companies with annual revenue of about $100 billion. Major players in investment companies include Merrill Lynch, Charles Schwab, AG Edwards, and brokerage companies like Citigroup and Fidelity.

About 900 companies are included in venture capital industry with combined annual revenue of about $26 billion and more than $250 billion of investments under management. Major companies include New Enterprise Associates, Kleiner Perkins Caufield and Byers, and Technology Crossover Ventures.