What is Banking Industry Analysis?

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  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 14 October 2019
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The banking industry describes all of the banks in the world, as well as the financial services and markets in which they participate. Professionals who specialize in banking industry analysis are responsible for monitoring factors such as relevant technological developments, interest rates, regulation and compliance, and overall financial management. Banking industry analysis is used by investors, banking professionals, and most businesses that depend on banks for cash management services, loans, and other financial services that may allow for financial liquidity.

As in most industries, the banking industry is largely impacted by advances and trends in technology. Online management services, ATM machines, and other programs and devices that are used to manage accounts can affect the speed at which banks can function and can also impact customer and client satisfaction. For these reasons, banking industry analysis often includes the monitoring of and outlook for technological developments that can affect the performances of organizations that deal within the banking industry.

Interest rates tend to rise and fall depending on the economic health of national and global economies. Banks depend on interest rates in order to profit. Banking industry analysis often includes interest rate projections, which use statistics and economic indicators, as well as the behaviors of markets and investors, to predict the fluctuation of these rates. When banks are not profiting from interest, they may depend on other methods for profit, such as ATM and overdraft fees.


The banking industry can have a profound impact on the economic status of countries and the world. For this reason, national governments and global organizations heavily regulate banking activities. Banking industry analysis may often involve studying of the effects of these various laws and regulations. Likewise, a professional in this field might calculate the effects of potential regulations and work with financial managers and consultants in order to change strategies that can help banks avoid related losses and other risks.

A professional in the banking industry analysis field might also work with individual banks to help improve financial and operational management. The professionals might use methods typical of industry analysis, including market research, in order to help a bank to grow and take on new and more profitable clients. Analysts who work with international or global banks often deal with large scale corporations, governments, and other significant organizations. Smaller banks, on the other hand, which may be regional and work with local businesses and individual clients, often require analysts that can focus on growth at a smaller scale by helping the bank to appeal to those within an immediate area.


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