Nonbank Financial Institutions Capture More Revenue Share
Traditional firms must integrate AI and reduce costs as nonbank competitors capture nearly a quarter of the market by 2030.
Updated on Oct. 28, 2026 in Financial Services
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Nonbank financial institutions are rapidly expanding their share of the global corporate and investment banking revenue pool, projected to reach 23% by 2030. This growth accompanies a shift in the $1.1 trillion banking sector where nonbanks are increasingly capturing market-making and advisory roles.
Why it matters
Growth in the sector is moving toward sponsors and hedge funds, pressuring traditional banks to integrate AI and data layers to maintain efficiency. As nonbanks gain market share, traditional firms must navigate rising competition for flow and market-making activities.
The global combined revenue pool for banks and nonbanks hit $1.1 trillion in 2026 and is expected to reach $1.4 trillion by 2030. While traditional corporate and investment banking accounts for 46% of revenue at the top seven banks, nonbank institutions are projected to capture 38% of market-making flow by 2030.
The players
Boston Consulting Group
A global management consulting firm that provides strategic research on financial industry operating models and revenue trends.
The details
Nonbank financial institutions are gaining ground by targeting the high-growth sponsor and hedge fund markets. To counter this, established banks have reduced their cost-income ratio by 9.8%, largely by adopting shared data intelligence layers to support AI-driven operations. These firms are increasingly moving away from separating advisory, financing, and transaction products to integrated models.
Timeline
2013: Nonbank financial institutions held a 4% share of the revenue pool.
2020-present: Corporate and investment banking reached 46% of revenue for the top seven banks.
2026: The combined revenue pool reached $1.1 trillion.
2030: The total revenue pool is projected to grow to $1.4 trillion.
Market Landscape
This development tracks the sustained movement of capital and market-making activity from traditional banking institutions toward nonbank entities. It marks a departure from the historical dominance of the top seven banks by showing how nonbanks capitalize on the growth of hedge funds and private sponsors.
Operators should prepare for sustained margin pressure as nonbank competitors capture a larger slice of market-making flow. Managers should evaluate the integration of AI-driven data layers as a necessary step to match the 9.8% cost-income efficiency gains seen in top-tier firms.
The takeaway
The rise of nonbank entities signals a permanent shift toward specialized, high-velocity financial services models. Operators should audit their current advisory and financing product pricing to ensure they remain competitive against the increasingly agile nonbank sector.
Further reading
For broader trends in industry competition, explore our Financial Services section.
Source note: This article includes information reported by Traders Magazine.
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