Banks - Why So Many?

Does it seem like there is a bank on every corner? Itrespected and has a long-term successful community
does to me. Everyone needs a bank and everyone'spresence. The second factor would be a board of
banking needs are different thus we see newdirectors and investors that have a strong net worth,
community banks, state chartered banks andbelieve in the mission of the bank and make a
nationally chartered banks doting our landscape.personal significant investment. Staying power is key.
Banking is a very personal activity and peopleMany businesses and individuals follow their banker
constantly look for an environment that they feelfrom bank to bank. Many times the path will lead to
comfortable in. The result seems to be another newan existing or new community or small regional bank.
branch of an existing bank or a new bank opening upClients' desire for personal banking relationships
on your corner.continues to drive the opening of the new
What are your banking hot buttons? Is it theneighborhood bank. The advances in technology have
convenience, consistent customer service, familiarityallowed the new banks to play with the big boys and
with staff, product selection or maybe rates. Usuallydeliver the type of services that are being demanded
there are a combination of factors that will lead youby their clients. An example would be on-line banking
to develop relations with a bank. If all banks met allwhich reduces the inconvenience issue.
needs there probably would only be about eight largeThere is a tremendous amount of wealth in the
banks in the country.United States. That fact will continue to drive the
Banking can be a profitable business. It is federallyexpansion of existing banks and start up of new
and state regulated so it gives a certain sense ofones. The owners of that wealth constantly look for
security to investors. The risk level is reduced soa combination of factors from their bank such as
there always seems to be a good supply ofunderstanding their needs and meeting their service
investors available for start-up banks. Two keyexpectations. Demand will continue to drive the
factors in the success of that new bank opening upsupply of new banks. Hence, a "bank on every
down the street from you may be the leadership ofcorner".
that bank such as a CEO who is well known,