Loan Administration, Check Cashing & Other Services in the US
The Loan Administration, Check Cashing and Other Services industry is highly dependent on the health of the housing market and throughout the current period its continued expansion amid low interest rates and increasing per capita disposable income created demand for industry operators. The servicin...
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| Format: | Market Research |
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| Language: | eng |
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| Online Access: | Request full text |
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| Summary: | The Loan Administration, Check Cashing and Other Services industry is highly dependent on the health of the housing market and throughout the current period its continued expansion amid low interest rates and increasing per capita disposable income created demand for industry operators. The servicing operations of the big banks have been increasingly replaced by regional bank servicers as well as nonbanks. Revenue from miscellaneous services within this industry, such as check cashing and money orders, experience competition from online money transfer services.
Industry revenue is expected to be sustained from dropping lower from increased residential real estate activity and housing starts through the current period. Industry revenue has been decreasing at an annualized 0.5% over the past five years, including an estimated 1.2% in 2023, and is expected to total $23.5 billion in 2023. In the same year, profit is set to reach 18.7%.
Industry revenue is expected to grow at an annualized 1.3% over the next five years, reaching an estimated $25.1 billion in 2028, when profit is projected to climb to 19.3%. The growth in consumer spending and disposable income will sustain lending activity and demand for servicing conducted by industry operators. The Federal Reserve is expected to increase interest rates at least for the beginning of the outlook period. Higher interest rates will weaken demand for debt, but will increase fees for industry operators. A decline in housing starts is expected to limit industry growth in the outlook period. |
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