Bottom line: Operators will continue to expand, but capital requirements present a barrier to new entrants

Over the five years to 2018, the Industrial Banks industry has become more conspicuous in the public spotlight. They are often established by nonfinancial enterprises to provide consumer financing, to make intracompany transactions, or to simply enter the credit market. The Federal Deposit Insurance Corporation (FDIC) placed a moratorium on new industrial bank applications in 2007, which the Dodd-Frank Wall Street Reform and Consumer Protection Act extended in 2010. The moratorium expired in July 2013, approving new entrants into the industry for the first time in nearly six years...purchase to read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
4,547
Businesses
72
Market Share of Companies

Industry Threats & Opportunities

  • Slow rises in the number of industrial banks and improving loan demand will cause revenue to rise
  • Industrial banks have fared comparatively better than the rest of banking sector
  • Nonfinancial institutions will seek to provide banking services to underserved markets

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    Industry Report - Industry Products Chapter

    Industrial banks engage in consumer and business lending, offering both secured and unsecured loans. Some industry operators also offer financial planning services. Banks with assets less than $100.0 million finance their operations by accepting time deposits and deposits that may be withdrawn through negotiable orders of withdrawal (NOW) accounts. The vast majority of revenue in this industry is generated through interest income and fees from credit cards but the industry also engages in brokering and dealing, financial planning and loans to consumers and businesses.Credit financingCredit financing is estimated to account for 70.1% of industry revenue. Rev...purchase to read more.

    Additional Insights for the Industrial Banks Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial Banks Industry are

  • Economies of scale
  • Superior financial management and debt management
  • Ability to raise revenue from additional sources

    • IBISWorld analysts also discuss how external factors such as Prime rate and Regulation for the Banking sector in the Industrial Banks industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Industrial Banks Industry?

    Industrial banks, also known as industrial loan companies, are financial institutions authorized to make consumer and commercial loans and to accept federally insured deposits. Either financial or commercial operators can own these types of banks. The Federal Reserve does not regulate industrial banks under the Bank Holding Act; instead, the state under which they are charted and the Federal Deposit Insurance Corporation regulates them.

    Industry Products
  • Loans
  • Credit financing
  • Financial planning
    • Industry Activities
  • Accepting demand and other deposits
  • Making commercial, industrial and consumer loans
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Prime rate
  • Regulation for the Banking sector
  • Aggregate household debt
  • Manufacturing capacity utilization
  • Industrial production index

    • Current Performance
  • Industry landscape
  • Employment
  • Interest rates and profit
  • Chart: Revenue Growth

    • Industry Outlook
  • Untapped capital of industrial banks
  • Expansion of commercially owned industrial banks
  • Regulatory landscape
  • Table: Industrial Banks Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Industrial Banks Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Financial Planning & Advice
  • Consumers

    • Key Selling Industries
  • Department Stores
  • Finance and Insurance
  • Investment Banking & Securities Dealing
  • New Car Dealers

    • Products & Services
  • Credit financing
  • Loans
  • Other
  • Financial planning
  • Chart: Industrial Banks Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Consumer and retail customers
  • Small business, corporate and institutional clients
  • Other clients
  • Chart: Major Market Segmentation for the Industrial Banks Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent & utilitiesMarketingOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Banks

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Banks Industry

    • Industry Globalization

    Major Companies

    American Express Centurion Bank, Comenity Capital Bank, Sallie Mae, UBS AG, USAA Savings Bank, Merrick Bank,
  • Table: American Express Centurion Bank - financial performance
  • Table: Comenity Capital Bank - financial performance
  • Table: Sallie Mae - financial performance
  • Table: UBS AG - financial performance
  • Table: USAA Savings Bank - financial performance
  • Table: Merrick Bank - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Banks Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Industrial Banks Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Prime Rate (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios

    Jargon & Glossary

    Automated Transfer Service
  • A depositor's savings account from which funds may be transferred automatically to the same depositor's checking account to cover a check written or to maintain a minimum balance.
    • Certificate Of Deposit (Cd)
  • A short- or medium-term, interest-bearing, FDIC-insured account.
    • Money Market Deposit Accounts (Mmda)
  • Accounts insured by the federal government that offer many of the same services as checking accounts. They are more limited in their transactions and carry slightly more risk.
    • What Our Customers Say
    Why buy this report?

    The Industrial Banks industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Industrial Banks:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Industrial Banks market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Industrial Banks, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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