- Deposits at the three largest lenders, JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Wells Fargo (NYSE:WFC), are growing at a much faster rate than other banks. Research firm Novantas says 45% of new checking accounts last year were opened at the big banks, even though these lenders only had 24% of U.S. branches. Regional and community banks had 76% of branches but only got 48% of new accounts, the firm added.
- Cheap and “sticky” financing from these deposits is a big advantage big banks have over their smaller counterparts. “The biggest banks are winning. Small banks should be very concerned,” wrote Tom Brown, CEO of hedge fund Second Curve Capital.
- JPMorgan and BofA are continuing to grow branches, with BofA targeting Denver and Indianapolis this year, and JPMorgan looking at Boston, Philadelphia, and Washington D.C., according to analysts.
- The aggressive growth strategy could steal business from the scandal-plagued Wells Fargo, which is struggling to move past all of the various regulatory issues it faces.
- Now read: Another Scandal? Wells Fargo's Wealth Management Unit Now Under Investigation
Original article