Financial Transactions Processing, Reserve, and Clearinghouse Activities — Business Survival Rate

An estimated 40% of financial transactions processing, reserve, and clearinghouse activities businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 16.9%.

40%

5-Year Survival Rate

-7.5%

Net Growth Rate

12,705

Total Firms

2,168

Annual Firm Deaths

Is Financial Transactions Processing, Reserve, and Clearinghouse Activities a Good Business to Start?

With a 40% five-year survival rate, financial transactions processing, reserve, and clearinghouse activities has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.

The annual exit rate of 16.9% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)7.9%

Exit Rate (closures)16.9%

Net negative: more businesses closing than opening (-8.9 pp spread).

Job Creation & Destruction

14.2%

Job Creation Rate

21.7%

Job Destruction Rate

-7.5%

Net Job Growth

The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 295,465 workers across 12,705 firms.

Want to know how much financial transactions processing, reserve, and clearinghouse activities businesses actually make?

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Frequently Asked Questions

What percentage of financial transactions processing, reserve, and clearinghouse activities businesses fail?: Approximately 60% of financial transactions processing, reserve, and clearinghouse activities businesses fail within their first 5 years. The annual closure rate is 16.9%, with 2,168 firms closing permanently in 2023.
Is the financial transactions processing, reserve, and clearinghouse activities industry growing or shrinking?: The financial transactions processing, reserve, and clearinghouse activities industry is currently shrinking with a net job creation rate of -7.5% per year. New businesses are entering at 7.9% while 16.9% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.