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 Analysis Chapter

    Industry operators in the Savings Banks and Thrifts industry serve as depository institutions for interest-bearing products such as savings accounts and certificates of deposit (CDs). The accrued funds are then loaned out to consumers and businesses, primarily in the form of mortgages, with residential mortgages accounting for the largest holding among savings banks and thrifts.Revenue growth for the Savings Banks and Thrifts industry is primarily reliant upon the quantity and quality of its loan portfolios. As a result, the industry performs in line with the overall economy, as consumer and business demand for loans increases during periods of economic growth...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?

    The Savings Banks & Thrifts 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 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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