UPS - Competitors

UPS Competition

Now Viewing UPS's competition in: Banks and Credit Unions (primary)

Recent Developments

Banking via Cell Phone - Banking customers nationwide will have a new technological option in 2008 - banking via cell phone. Many of the US' largest banks offer some form of mobile banking, and others are studying its benefits. Essentially the service allows consumers to perform tasks on a mobile phone that they can now do on the Internet. Banking experts note that banks can save money and increase ad revenue by implementing the service.

Home Equity Lines Looming Casualty - The US credit crisis, which began with the subprime mortgage crisis and has infiltrated many areas of the US economy, is causing many banks to rethink home equity lines. Banks in regions with falling housing prices are cutting off lines of credit to some consumers, and are being more stringent about giving credit. Banks are nervous because of the rising default rates of home equity loan holders, which they feel may foreshadow future mortgage defaults; cutting off home equity lines reduces their exposure if homeowners default.

Community Banking Unhurt, Larger Banks Suffer - Community banks are surviving the subprime mortgage crisis better than their larger cousins, such as Bank of America and Wachovia, which were forced to claim large losses in fourth quarter 2007. Experts claim that community banks' focus on local real estate, and their historic commitment to commercial rather than mortgage loans, advantages them. While not all small banks avoided losses in 2007, many weren't as heavily exposed to market losses as larger nationwide banks.

Competitive Landscape

Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital-intensive and highly automated: annual revenue per employee is close to $300,000.

Full Industry Overview For Banks and Credit Unions

Banks and Credit Unions Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US banks and credit unions is forecast to grow at an annual compounded rate of 3.9 percent between 2007 and 2012.

Bank, Savings Institution, and Credit Union Growth Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.