Encore Bancshares - Competitors

Encore Bancshares Competition

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

Recent Developments

Mortgage Crisis Yields Higher ATM Sales - Banking industry experts are intrigued by a surprising development thus far in 2008: higher sales of ATMs to banks and credit unions. The increasing sales are due largely to renewed investment in banks' core services, such as retail banking, in light of ongoing problems with the mortgage sector. Many of the sales are of new envelope-free ATMs, which allow deposits without envelopes and which industry experts say increase customer use.

Federal Reserve Survey Indicates Tough Lending Practices - Any person or company trying to get a loan will find the going much tougher, according to the US Federal Reserve's most recent survey. About two-thirds of US banks have tougher standards for getting a home loan, and these same banks have raised the bar for commercial lending and home equity loans, among other credit products. To prevent a credit freeze, the Federal Reserve recently increased available funds to $150 billion for US banks.

Credit Unions Join Fee Fight - Pending US legislation would drastically change how interchange fees, the transaction fees charged each time a credit card is used, are set, a possibility that's pitting credit unions and banks against many retailers. Banks and credit unions earn considerable income from the fees, often as issuers of credit cards. Merchants want to lower the fees to reduce the price of many consumer goods, but doing so would impact the bottom line of many banks and credit unions, just as the US economic crisis continues to unfold.

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.