Business Banking Segments

Part
01
of three
Part
01

Business Banking Segments - Part 1

While we could not determine the top segments or industries that US business banks invest in or support, we utilized the closest available approximation — industries with the highest average deposit balance at business banks — to complete the attached spreadsheet. A description of our findings can also be found below, followed by an explanation of our research methodology.

Findings

  • Unions have the highest average deposit balance at $544,000.
  • Unions have been declining in America since data was first collected by the Bureau of Labor Statistics in 1983. While no preexisting rate of decline was found, a simple calculation using a CAGR calculator finds that unions have grown at a CAGR of -1.57% in the last 10 years (12.3% of all workers were unionized in 2009 compared to 10.5% in 2018).
  • Professional services associations have the second-highest average deposit balance at $501,000.
  • The CAGR of professional organizations in the US between 2013 and 2018 is 3.3%, according to IbisWorld. (This report cannot be linked directly in a Wonder report, but can be accessed simply by searching 'Professional Organizations in the US' on IbisWorld. The precise URL is also provided in the attached spreadsheet.)
  • Social/civic organizations have the third-highest average deposit balance at $500,000.
  • The CAGR of civic, social & youth organizations in the US between 2013 and 2018 is 2.1%, according to IbisWorld. (Again, this report cannot be linked directly in a Wonder report, but can be accessed simply by searching 'Civic, Social & Youth Organizations in the US' on IbisWorld. The precise URL is also provided in the attached spreadsheet.)
  • Churches & religious organizations have the fourth-highest average deposit balance at $495,000.
  • While the precise rate of growth or decline in this segment needs triangulation, it is likely that it is declining, given recent data which shows a sharp decline in church membership in the US.
  • Fine arts schools have the fifth-highest average deposit balance at $369,000.
  • The CAGR of fine arts schools in the US between 2014 and 2019 is 3.0%, according to IbisWorld. (Again, this report cannot be linked directly in a Wonder report, but can be accessed simply by searching 'Fine Arts Schools in the US' on IbisWorld. The precise URL is also provided in the attached spreadsheet.)

Methodology

To determine which industries or segments the US business banking industry supports most, we first conducted a wide-ranging search of relevant industry authorities. A report from CenterState Banking Corporation's Correspondent Division found in this portion of the research contained an approximation of the desired data; namely, the top fifteen industries in terms of average deposit balances at business banks in 2019. No other useful data was located in this portion of the research, so in an attempt to find data more directly related to support and/or investment, or at least to corroborate the data in this source, we continued with an alternate research approach.

Our second approach was to conduct a survey of noted organizations and companies that are not necessarily within the business banking industry, but nonetheless conduct research and publish reports regarding that industry. Examples of such companies include prominent consultancy and professional services companies, such as McKinsey, Deloitte, and BCG, as well as major companies servicing the business banking industry, such as Oracle. During this phase of the research, we also conducted searches of scholarly databases, hoping to find academic studies produced on the subject. While we located many reports on the business banking industry in this phase of the research, none contained relevant data.

As a third approach to find data that was more relevant than the aforementioned CenterState data, or to simply corroborate this data if more relevant data could not be found, we conducted a wide-ranging press search. Our hope in this phase of the research was either to find relevant data directly reported by a media outlet, or to find a relevant industry report described in a news article that could be further explored in search of useful data. Our search focused primarily on finance and business news outlets such as Forbes, Fortune, the Wall Street Journal, and others, but also included general interest outlets like the New York Times and the Washington Post. Unfortunately, after an extensive search no new data was found.

After exhausting these three research approaches, we opted to use the CenterState data as the closest available approximation for what industries US business banks most prominently support. We then set about determining the growth rate for each of the top five segments. For unions, while we could not find a preexisting growth rate, we did find BLS data dating back to 1983 that can be used to calculate the rate of the segment's decline over the intervening years. For professional associations, social/civic organizations, and fine arts schools, we utilized data produced by IbisWorld. We could not find a preexisting rate of growth or decline for churches/religious organizations, but data showing a steep decline in US church membership suggests that the segment is likely declining.
Part
02
of three
Part
02

Business Banking Segments - Part 2

While we could not determine the top industries or segments that US business banks support or invest in, we utilized a close approximation — the top industries in terms of average deposit balance at US business banks — to complete the attached spreadsheet. Our findings can also be found below, followed by an explanation of our methodology.

Findings

  • Law firms have the sixth-highest average deposit balance at $347,000.
  • While law firms may see reduced growth in the near term, the US law industry has grown between 2014 and 2019 at a CAGR of 2.2%, according to IbisWorld. (IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Law Firms in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Title companies have the seventh-highest average deposit balance at $346,000. According to IbisWorld, the US title insurance industry has grown at a CAGR of 3.0% between 2013 and 2018. (Again, IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Title Insurance in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Technical trade schools have the eighth-highest average deposit balance at $339,000.
  • Driven in part by rising costs of colleges and universities, the US technical & trade school industry has grown at a CAGR of 1.2% between 2014 and 2019, according to IbisWorld. (Again, IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Trade & Technical Schools in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Private K-12 schools have the ninth-highest average deposit balance at $334,000.
  • While some triangulation is needed to determine the growth rate of the private K-12 industry in the US, the National Center for Education Statistics (NCES) provides data regarding enrollment in these schools over time, showing that it fell throughout the 2000s but has begun to grow again in recent years.
  • Air charters have the tenth-highest average deposit balance at $325,000. According to IbisWorld, the US charter flight industry has grown at a 4.2% CAGR between 2014 and 2019. (Again, IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Charter Flights in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)

Methodology

To determine which industries or segments the US business banking industry supports most, we first conducted a wide-ranging search of relevant industry authorities. A report from CenterState Banking Corporation's Correspondent Division found in this portion of the research contained an approximation of the desired data; namely, the top fifteen industries in terms of average deposit balances at business banks in 2019. No other useful data was located in this portion of the research, so in an attempt to find data more directly related to support and/or investment, or at least to corroborate the data in this source, we continued with an alternate research approach.

Our second approach was to conduct a survey of noted organizations and companies that are not necessarily within the business banking industry, but nonetheless conduct research and publish reports regarding that industry. Examples of such companies include prominent consultancy and professional services companies, such as McKinsey, Deloitte, and BCG, as well as major companies servicing the business banking industry, such as Oracle. During this phase of the research, we also conducted searches of scholarly databases, hoping to find academic studies produced on the subject. While we located many reports on the business banking industry in this phase of the research, none contained relevant data.

As a third approach to find data that was more relevant than the aforementioned CenterState data, or to simply corroborate this data if more relevant data could not be found, we conducted a wide-ranging press search. Our hope in this phase of the research was either to find relevant data directly reported by a media outlet, or to find a relevant industry report described in a news article that could be further explored in search of useful data. Our search focused primarily on finance and business news outlets such as Forbes, Fortune, the Wall Street Journal, and others, but also included general interest outlets like the New York Times and the Washington Post. Unfortunately, after an extensive search no new data was found.

After exhausting these three research approaches, we opted to use the CenterState data as the closest available approximation for what industries US business banks most prominently support. We then set about determining the growth rate for each of the next five segments. For law firms, title companies, technical trade schools, and air charters, we utilized the market research company IbisWorld. We could not locate a preexisting growth or decline rate for private K-12 schools, but NCES data provides a fairly straightforward picture of the industry's growth in recent years.
Part
03
of three
Part
03

Business Banking Segments - Part 3

While we could not determine the top industries or segments that US business banks support or invest in, we utilized a close approximation — the top industries in terms of average deposit balance at US business banks — to complete the attached spreadsheet. Our findings can also be found below, followed by an explanation of our methodology.

Findings

  • Insurance companies have the eleventh-highest average deposit balance at $291,000. Some triangulation is necessary to determine the growth rate of the US insurance industry as a whole, given its numerous segments. IbisWorld offers reports on several US insurance segments, including life, homeowners', and property, casualty, and direct.
  • Movie theaters have the twelfth-highest average deposit balance at $280,000. According to IbisWorld, the US movie theater industry has grown at a CAGR of 3.6% between 2014 and 2019. (IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Movie Theaters in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Tax prep services companies have the thirteenth-highest average deposit balance at $272,000. This industry has grown at a 2.1% CAGR between 2014 and 2019, according to IbisWorld. (Again, IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Tax Preparation Services in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Advertising/PR firms have the fourteenth-highest average deposit balance at $264,000. US advertising agencies have grown at a 4.2% CAGR between 2014 and 2019, according to IbisWorld. (Again, IbisWorld reports cannot be directly linked in a Wonder report, but this report can be found by searching 'Advertising Agencies in the US' on the IbisWorld site. The specific URL has also been provided in the attached spreadsheet.)
  • Performing arts groups have the fifteenth-highest average deposit balance at $257,000. Some triangulation is necessary to determine the precise growth rate of this industry, but multiple data sets show that the amount contributed to the US economy by arts and culture is rising, as is its proportion of US GDP. Similarly, RAND reports that "the number of Americans attending live performances and purchasing recorded performances has been growing consistently over the years."

Methodology

To determine which industries or segments the US business banking industry supports most, we first conducted a wide-ranging search of relevant industry authorities. A report from CenterState Banking Corporation's Correspondent Division found in this portion of the research contained an approximation of the desired data; namely, the top fifteen industries in terms of average deposit balances at business banks in 2019. No other useful data was located in this portion of the research, so in an attempt to find data more directly related to support and/or investment, or at least to corroborate the data in this source, we continued with an alternate research approach.

Our second approach was to conduct a survey of noted organizations and companies that are not necessarily within the business banking industry, but nonetheless conduct research and publish reports regarding that industry. Examples of such companies include prominent consultancy and professional services companies, such as McKinsey, Deloitte, and BCG, as well as major companies servicing the business banking industry, such as Oracle. During this phase of the research, we also conducted searches of scholarly databases, hoping to find academic studies produced on the subject. While we located many reports on the business banking industry in this phase of the research, none contained relevant data.

As a third approach to find data that was more relevant than the aforementioned CenterState data, or to simply corroborate this data if more relevant data could not be found, we conducted a wide-ranging press search. Our hope in this phase of the research was either to find relevant data directly reported by a media outlet, or to find a relevant industry report described in a news article that could be further explored in search of useful data. Our search focused primarily on finance and business news outlets such as Forbes, Fortune, the Wall Street Journal, and others, but also included general interest outlets like the New York Times and the Washington Post. Unfortunately, after an extensive search no new data was found.

After exhausting these three research approaches, we opted to use the CenterState data as the closest available approximation for what industries US business banks most prominently support. We then set about determining the growth rate for each of the next five segments. For movie theaters, tax prep services, and advertising/PR firms, we utilized data from the market research firm IbisWorld. For insurance companies, we determined that triangulation would be necessary to find the industry's overall growth, given the large amount of segments that it consists of. No specific growth rate could be found for performance arts groups, although several sources were found which suggest that the industry is growing.
Sources
Sources