Large banks are winning: Here are five strategies to beat them

by David Kerstein, CUNA Councils

The recent Wall Street Journal article about the dominance of the three largest banks struck a visceral reaction among bankers. The key points were not only that the top three (JP Morgan Chase, Bank of America and Wells Fargo) have grown market share to 32 percent of total deposits, but also that last year they garnered an astounding 45 percent of all new checking accounts.

The reactions we heard reminded us of the stages of grief—comments ranging from denial (“It can’t be true”); anger (“How could they accomplish that—even Wells Fargo with its reputational problems!”); to finally acceptance and resignation (“How can we possibly compete against them?”).

Let’s step back and ask: Is this accurate? If so, how did they do it? What can—and should—you and your bank do to compete?

 

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