Breaking the bank: Despite revenue growth, the industry will continue to contend with intense competition

The Savings Banks and Thrifts industry has exhibited moderate growth over the five years to 2018 due to favorable economic conditions and increased demand for residential mortgages. Rising consumer income in the form of per capita disposable income coupled with low interest rates have resulted in an again-thriving housing market. As demand for housing has increased, demand for residential mortgages has resulted in increased revenue for the industry. Decreased regulatory oversight and continued strength in the housing market are expected to drive industry growth over the five years to 2023. In addition, growth in the housing market is expected to continue, albeit at a gradual pace. However, rising interest rates will hinder demand for loan products as loan terms become less favorable...purchase to read more.

Industry Statistics & Market Size
Revenue
$72bn
Annual Growth 13-18
3.4%
Forecast Growth 18-23
Profit
Employment
120,545
Businesses
8,895
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Decreased regulatory oversight and continued strength in the housing market are expected to drive industry growth
  • Operators once subject to SIFI compliance measures will experience a decrease in compliance costs
  • The growing disparity between interest rates will boost the industry’s average profit margin
  • Industry Report - Industry Locations Chapter

    Mid-AtlanticSimilar to other industries in the financial sector, the Mid-Atlantic region holds the most industry establishments, estimated at 33.0% of the total in 2018. The region is home to three of the five largest states in terms of establishment share, including Pennsylvania, New York and New Jersey, which represent 11.8%, 10.2% and 8.9% of industry establishments, respectively. The Mid-Atlantic is home to the major financial center of New York City, and the historical importance of financial markets in the region largely explains the region's extensive share of industry establishments.New EnglandNew England accounts for the second-largest share of industry establishments, estimated at 24.1% of the total in 2018. New...purchase to read more.

    Additional Insights for the Savings Banks & Thrifts Industry

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

  • Access to inexpensive deposits
  • Having a strong local presence
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as External competition for the Savings Banks and Thrifts industry and year conventional mortgage rate in the Savings Banks & Thrifts industry impact industry performance..

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    What's in this report

    What is the Savings Banks & Thrifts Industry?

    The industry includes companies that accept customer deposits and place them into interest-bearing products like savings accounts and certificates of deposit (CDs). Industry operators then loan these deposits at higher interest rates through consumer and business loans and make profit on the difference. This industry only covers companies governed by the Office of Comptroller of the Currency; commercial banks and credit unions are not included in this industry.

    Industry Products
  • Residential mortgages
  • Commercial and industrial mortgages
  • Home equity loans
  • Vehicle loans
  • Other business loans
  • Industry Activities
  • Providing residential mortgages
  • Providing commercial and industrial mortgages
  • Providing home equity loans
  • Providing vehicle loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Savings Banks and Thrifts industry
  • year conventional mortgage rate
  • House price index
  • Regulation for the Savings Banks industry
  • S&P 500

  • Current Performance
  • Economic environment
  • Regulatory environment
  • Industry operations
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic growth and the housing market
  • Regulation and industry operations
  • Competition from commercial banks
  • Table: Savings Banks & Thrifts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Savings Banks & Thrifts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Consumers

  • Key Selling Industries
  • Commercial Leasing
  • Finance and Insurance

  • Products & Services
  • Residential mortgages
  • Other
  • Other business loans
  • Home equity loans
  • Commercial and industrial mortgages
  • Vehicle loans
  • Chart: Savings Banks & Thrifts Industry Products and Services Segmentation

  • Demand Determinants
  • Deposits
  • Loans

  • Major Markets
  • Consumers
  • Other operators
  • Transportation/utility operators
  • Financial, insurance and real estate operators
  • Service sector operators
  • Manufacturing sector operators
  • Health services operators
  • Retail sector operators
  • Chart: Major Market Segmentation for the Savings Banks & Thrifts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expenses
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Savings Banks & Thrifts

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Savings Banks & Thrifts Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Savings Banks & Thrifts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Savings Banks & Thrifts Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • 30-year conventional mortgage rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Certificate Of Deposit
  • A financial product that generally has a specific fixed term and interest rate and is insured by the Federal Deposit Insurance Corporation.
  • Provisions For Loan Losses
  • Funds set aside as allowances for bad debts, including debts where the customer defaults or where the terms of the loan need to be renegotiated.
  • Write-Down
  • A deliberate reduction in the value of an asset to reflect its current market value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Savings Banks & Thrifts provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Savings Banks & Thrifts:
    • 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 Savings Banks & Thrifts 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 Savings Banks & Thrifts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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