Capterra Glossary
Bank Tiers
Bank tiers categorize banks and financial institutions based on their size (in terms of total assets) relative to the entire banking market. Because banks can have different growth opportunities depending on the countries and regions they serve, it can be useful to assign bank tiers relative to a bank’s location. Gartner, for example, categorizes banks into tiers based on which of 11 regions the bank is located in (four “mature markets” and seven “emerging markets”) to facilitate a fairer comparison between banks facing varying economic and business conditions.
What Small and Midsize Businesses Need to Know About Bank Tiers
For small and midsize banks, the bank tiering system can help managers identify their most immediate competitors. A well-defined tiering system also helps banks understand what it takes to expand and move up to the next tier.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling