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10 years from now, there will be ⅓ less banks in the US than there are today.
Bold prediction?
About as bold as the trend from the past 20 years.
20 years ago there were 10,000 chartered banks in the United States. Today there are 4,888.
Just like in many industries, banks have found that there are efficiencies in having an operation that scales. Mergers have been the overarching theme of the past 20 years with some periods (hello, Great Recession) where banks failed.
So, where do we go from here? Of those 4,888 banks today, which 1,629 will cease to exist.
Cease to exist may be a strong word since the brick and mortar branches and employees may continue just under a different shingle.
Tune in next week for the different types of banks that will cease to exist.
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I post weekly about banking, data science and family adventures.
Digging deep on banks is what I do. If there is a bank that you are curious about, shoot me a note and we can discuss this bank together.
