Denver South Economic Development Partnership Industry Cluster Profile
FINANCIAL SERVICES
The nine-county Metro Denver and Northern Colorado region[1] is the major financial center between Los Angeles and Chicago. Downtown Denver’s financial district along 17th Street is known as the “Wall Street of the West.” Denver is home to a branch of the Federal Reserve Bank and one of only six U.S. Mints.
The region is one of the few areas outside of the northeast with a substantial financial services industry in three subclusters: (1) banking and finance, (2) investments, and (3) insurance. The banking and finance subcluster is comprised of transaction-oriented companies including commercial banks and credit unions, lenders, credit agencies, and mortgage bankers. The investments subcluster includes companies involved in securities and commodities trade, real estate investment trusts (REITS), and portfolio management. The insurance subcluster is comprised of insurance carriers and brokerages.
The Denver South region[2] is home to a high concentration of insurance and financial services companies. In fact, one-third of all financial services employment in the nine-county region is located in the Denver South region. The region’s diverse financial services industry base of 2,210 companies and approximately 29,410 employees encompasses savings institutions, major investment and insurance companies, commercial banks, and financial leasing firms. The region’s central location and reputation as a global commercial gateway gives financial services companies a competitive edge. Further, the Denver South region’s highly educated workforce, high concentration of corporate talent, and outstanding quality of life has resulted in the recruitment and retention of several Forbes Global 2000, Fortune 500, and Inc. 500 Fastest Growing companies. Seven companies headquartered in the region were included on the Forbes’ 2013 Global 2000 list, seven companies were included on the 2013 Fortune 500 list with revenues totaling more than $77 billion, and three were named among Inc. 500’s fastest-growing private companies. Notable company announcements included:
· Charles Schwab broke ground on a new $230 million, 467,000-square-foot office campus in Lone Tree to accommodate its existing 2,000 employees. The company plans to add up to 500 jobs at the campus, which is slated to open in 2014.
· Fidelity Investments opened its new regional U.S. customer service center in Greenwood Village, which will eventually accommodate up to 500 employees. The company’s new location will assist customers with retirement planning, portfolio investment, college savings, and other needs.
· California-based Redwood Trust will open its first Colorado office in Douglas County and will create 550 professional jobs in the next five years. The mortgage lending company cited Colorado’s expansive mortgage lending and financial talent pool, and a pro-business environment as key factors in its location decision.
· Visa will expand its existing global technology center in Douglas County. The company will add more than 400 information technology, financial support, and client support positions over the next five years, paying an average of $106,000 a year.
· Commercial bank and investment management firm AMG National Trust Bank will build a new national headquarters building in Arapahoe County’s Greenwood Corporate Plaza development beginning in March 2014. The three-story, 45,000-square-foot building will house the company’s 80 employees and accommodate future growth.
· Greenwood Village-based National Bank Holdings Corp. launched its specialty commercial bank unit focused on government and nonprofits. The company’s new unit is part of its approach to broaden its commercial capabilities to serve its clients through specialty offerings.
Banking and finance Economic Profile
The banking and finance subcluster consists of 16, six-digit North American Industry Classification System (NAICS) codes including both depository and non-depository institutions such as commercial banks, credit card companies, and mortgage brokers.
Denver South / Nine-County Region / United StatesDirect Employment, 2013 / 11,020 / 40,080 / 2,166,840
Number of Direct Companies, 2013 / 580 / 3,450 / 238,000
One-Year Direct Employment Growth, 2012-2013 / 0.1% / 0.8% / 1.8%
Five-Year Direct Employment Growth, 2008-2013 / -6.3% / -8.3% / -10.4%
Avg. Annual Direct Employment Growth, 2008-2013 / -1.3% / -1.7% / -2.2%
Direct Employment Concentration / 4.7% / 2.1% / 1.4%
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2007-2010; Market Analysis Profile, 2011-2013;
Development Research Partners.
Banking and Finance Employment
· The banking and finance subcluster directly employed 11,020 workers in the Denver South region in 2013.
· Banking and finance companies employed 4.7 percent of the region’s total employment base, compared with 2.1 percent and 1.4 percent employment concentrations in the nine-county region and nationwide, respectively.
· The banking and finance subcluster rebounded in 2011 through 2013, after four consecutive years of employment declines due to the national finance-related recession. Employment in the region increased 0.1 percent between 2012 and 2013, compared with a 0.8 percent and 1.8 percent increase in the nine-county region and nationwide, respectively.
· The majority of the region’s banking and finance subcluster employees worked in commercial banking, mortgage banking and loan correspondence, and loan brokerage companies.
Banking and Finance Companies
· Approximately 580 banking and finance companies operated in the Denver South region in 2013.
· More than 74 percent of the region’s banking and finance companies employed fewer than 10 people, while 1.2 percent employed 250 or more.
· Nearly 54 percent of the region’s banking and finance companies provided mortgage banking, loan correspondance, and loan brokerage services.
Banking and finance WORKFORCE Profile
Banking and Finance Workforce | The nine-county region’s banking and finance subcluster employs 40,080 people and includes a large pool of talented, well-educated, and highly skilled workers. The age distribution of workers in the banking and finance subcluster is concentrated in the younger age brackets, especially the 25-34 age group. Compared with the age distribution across all industries, the banking and finance subcluster has a larger share of employees that are between the ages of 25 and 44 years old.
The banking and finance workforce supply consists of four main components: those currently working in the industry; those doing a similar type of job in some other industry; the unemployed; and those currently in the education pipeline. The Metro Denver and Northern Colorado Banking and Finance Occupation Profile below includes the 10 largest banking and finance occupations in the nine-county region. For these 10 largest occupations, the chart details the total number of workers employed in that occupation across all industries, the number of available applicants that would like to be working in that occupation, and the number of recent graduates that are qualified for that occupation.
Metro Denver and Northern Colorado Banking and Finance Occupation Profile10 Largest Banking and Finance Occupations in Metro Denver and Northern Colorado / Total Working Across All Industries (2013) / Number of Available Applicants (2013) / Number of Graduates (2012)
1. Tellers / 5,401 / 664 / 4
2. Loan officers / 5,517 / 529 / 385
3. Securities, commodities, & financial services sales agents / 24,237 / 37 / 0
4. Customer service representatives / 36,189 / 9,934 / 0
5. Loan interviewers & clerks / 2,763 / 223 / 4
6. First-line supervisors of office & administrative support workers / 15,520 / 2,138 / 76
7. Financial managers / 9,081 / 197 / 436
8. Bookkeeping, accounting, & auditing clerks / 28,885 / 2,250 / 301
9. Personal financial advisors / 29,152 / 126 / 385
10. Bill & account collectors / 4,140 / 822 / 4
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation. Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated.
Source: Provided by Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2013.4 Class of Worker.
Wages | The 2012 average annual salary for a banking and finance worker in the nine-county region was $71,210, compared with the national average of $69,320. Total payroll for the banking and finance subcluster in the region exceeded $2.8 billion in 2012. The median, average, and percentile annual salaries for the 10 largest occupations in the banking and finance subcluster are included in the following chart.
Metro Denver and Northern Colorado Banking and Finance Salary Profile, 201310 Largest Banking and Finance Occupations in Metro Denver and Northern Colorado / Median Salary / 10th Percentile Salary / 25th Percentile Salary / Average Salary / 75th Percentile Salary / 90th Percentile Salary
1. Tellers / $26,062 / $21,278 / $22,984 / $28,184 / $30,742 / $38,792
2. Loan officers / $67,725 / $39,478 / $52,333 / $78,000 / $90,792 / $127,213
3. Securities, commodities, & financial services sales agents / $54,766 / $37,378 / $44,158 / $60,653 / $72,342 / $94,016
4. Customer service representatives / $32,282 / $21,778 / $26,270 / $35,069 / $41,870 / $52,125
5. Loan interviewers & clerks / $44,658 / $31,720 / $37,939 / $45,427 / $52,458 / $60,466
6. First-line supervisors of office & administrative support workers / $54,350 / $35,090 / $43,347 / $56,701 / $68,058 / $82,742
7. Financial managers / $97,094 / $63,086 / $78,749 / $101,712 / $119,080 / $166,254
8. Bookkeeping, accounting, & auditing clerks / $36,421 / $21,861 / $28,891 / $37,398 / $44,866 / $53,955
9. Personal financial advisors / $66,040 / $51,397 / $58,282 / $68,474 / $76,981 / $91,707
10. Bill & account collectors / $34,736 / $26,208 / $30,118 / $36,338 / $40,955 / $50,149
Source: Provided by Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2013.4 Class of Worker.
Education and Training | The higher education system in Colorado provides an excellent support system for businesses in the region. There are 28 public institutions of higher education in Colorado, of which seven four-year and six two-year public institutions offering comprehensive curricula are located in the nine-county region. In addition, there are over 100 private and religious accredited institutions and nearly 340 private occupational and technical schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of the major accredited educational institutions with the greatest number of graduates for each of the 10 largest banking and finance occupations in the nine-county region are included below. A directory of all higher education institutions with corresponding web sites may be accessed via http://highered.colorado.gov.
· Colorado State University www.colostate.edu / · Regis Universitywww.regis.edu
· Colorado State University Global Campus
www.colostate.edu / · University of Colorado Boulder
www.colorado.edu
· Front Range Community College
www.frontrange.edu / · University of Colorado Denver
www.ucdenver.edu
· Jones International University
www.jiu.edu / · University of Denver
www.du.edu
· Metropolitan State University of Denver
www.msudenver.edu / · University of Northern Colorado
www.unco.edu
Major Banking and Finance Companies
· Bank of the Westwww.bankofthewest.com / · KeyBank
www.key.com
· Bellco Credit Union
www.bellco.org / · Nordstrom National Credit Bank
http://shop.nordstrom.com
· Cherry Creek Mortgage
www.cherrycreekmortgage.com / · Pulte Mortgage
www.pultemortgage.com
· Citywide Banks
www.citywidebanks.com / · Specialized Loan Servicing LLC
www.sls.net
· CoBank
www.cobank.com / · U.S. Bank
www.usbank.com
· Colorado State Bank and Trust
www.csbt.com / · Urban Lending Solutions
www.urban-ls.com
· Elavon
www.elavon.com / · Vectra Bank Colorado
www.vectrabank.com
· FirstBank Holding Company
www.efirstbank.com / · VISA Debit Processing Services
www.visadps.com
· First Data Corporation
www.firstdata.com / · Wells Fargo Bank Colorado
www.wellsfargo.com
· Guaranty Bank and Trust
www.guarantybankco.com / · Western Union
www.westernunion.com
· JPMorgan Chase & Co.
www.chase.com
Investments ECONOMIC PROFILE
The investments subcluster consists of 15, six-digit North American Industry Classification System (NAICS) codes including companies involved in securities, brokerage, real estate investment trusts, and holding companies.
Denver South / Nine-County Region / United StatesDirect Employment, 2013 / 8,010 / 23,280 / 1,382,730
Number of Direct Companies, 2013 / 1,000 / 6,620 / 317,240
One-Year Direct Employment Growth, 2012-2013 / 2.0% / 1.2% / 5.2%
Five-Year Direct Employment Growth, 2008-2013 / 14.0% / 3.2% / -1.0%
Avg. Annual Direct Employment Growth, 2008-2013 / 2.7% / 0.6% / -0.2%
Direct Employment Concentration / 3.4% / 1.2% / 0.9%
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2007-2010; Market Analysis Profile, 2011-2013;
Development Research Partners.
Investments Employment
· The investments subcluster directly employed 8,010 workers in the Denver South region in 2013.
· Investment companies employed 3.4 percent of the region’s total employment base, compared with 1.2 percent and 0.9 percent employment concentrations in the nine-county region and nationwide, respectively.
· Nearly 88 percent of investments employees worked in Arapahoe (65 percent) and Douglas (23 percent) Counties. Approximately 63 percent of investments employees worked in security brokering and dealing, and investment advice.
Investment Companies
· Approximately 1,000 investment companies operated in the Denver South region in 2013.
· More than 91 percent of the region’s investment companies employed fewer than 10 people, while 0.7 percent employed 250 or more.
· Nearly 71 percent of companies in the investments subcluster provided investment advice, security brokering and dealing, and other investment services.
Investments WORKFORCE PROFILE
Investments Workforce | The nine-county region’s investments subcluster employs 23,280 people and includes a large pool of talented, well-educated, and highly skilled workers. The age distribution of workers in the investments subcluster is concentrated in the older age brackets, especially the 55-64 age group. Compared with the age distribution across all industries, the investments subcluster has a larger share of employees that are older than 35 years old.
The investments workforce supply consists of four main components: those currently working in the industry; those doing a similar type of job in some other industry; the unemployed; and those currently in the education pipeline. The Metro Denver and Northern Colorado Investments Occupation Profile below includes the 10 largest investment occupations in the nine-county region. For these 10 largest occupations, the chart details the total number of workers employed in that occupation across all industries, the number of available applicants that would like to be working in that occupation, and the number of recent graduates that are qualified for that occupation.