Now more than a decade after the Great Recession’s end, businesses are wondering about the current state of financial services – and commercial banking sector specifically – throughout the U.S. Still in 2019, the commercial banking marketplace remains integral to the U.S. economy, providing necessary products and services to consumers every day. As such, revenues have grown considerably since the Great Recession, also leading to robust increases in receivables and bad debts. These trends suggest that the commercial banking sector should present worthwhile opportunities for immediate collection needs by creditors, and also long-term growth for collectors prospecting this market.
Kaulkin Ginsberg Company collected, examined, and analyzed data to create a comprehensive report focused on the commercial banking sector tailored specifically for the accounts receivable management (ARM) industry. The report delves into various chapters, including market sizing, loan segment analysis, economic and market drivers, regulatory occurrences, and case studies. Data and analyses provided in the report range from revenue segmentation to allowance for bad debt developments, including specific information across dozens of companies.
The commercial banking sector report covered both primary types of financial lending institutions in the U.S.: commercial and investment banks. Over the past few decades, however, many primary players have merged service lines, offering both interest-bearing (e.g., loans) and investment products. As the graph below illustrates, both revenue segments have grown considerably since the turn of the millennium; however, loans and other related offerings continually account for most of market revenue. Furthermore, annual profitability has remained strong with the lone exception, unsurprisingly, occurring during the Great Recession.
As it relates ARM services, the sheer fact that interest-bearing revenue streams are growing strongly is critical. These data present an exceptional foundation for receivables and bad debt growth annually, supported by Kaulkin Ginsberg’s observation of distressed debt trends in its research. As lending intensifies and consumers capitalize the lower-interest rate environment, banking institutions will accumulate massive portfolios and borrowers may face extensive delinquencies.
The commercial banking sector maintains more than enough opportunities to go around. Yes, there are giants like JPMorgan Chase or Citigroup that maintain a large percentage of total market bad debt, but there are thousands of small creditors across the nation with bad debt portfolios comprised of tens of billions of dollars. You’re contracted with a Wells Fargo or PNC? Great! But the data suggests that creditors of all sizes will need to collect upon their distressed asset portfolios more effectively, thereby necessitating specialized collection services provided by the ARM industry.
To purchase the full report, or inquire about additional market sectors – including cable & telecommunications, credit unions, Federal Government, healthcare, property management, student loans, and utilities, please reach out to Kaulkin Ginsberg’s market research team at hq@kaulkin.com.