bank that services only a segment of the market in its geographic region, or that offers a limited number of services to its special advantage. Community banks are niche banks in the sense that they offer credit and deposit services to local customers, but they rely on correspondent banks for more sophisticated products, such as foreign exchange and letters of credit.
particular specialty in which a firm or person finds they prosper. Niche strategy in marketing is to market to a small but lucrative portion of the market. The small size of the niche generally ensures efficient marketing efforts and few if any direct competitors.
particular specialty in which a firm has garnered a large market share. Often, the market will be small enough so that the firm will not attract very much competition. For example, a company that makes a line of specialty chemicals for use by only the petroleum industry is said to have a niche in the chemical industry. Stock analysts frequently favor such companies, since their profit margins can often be wider than those of firms facing more competition.
