The past few weeks, make that days, have changed the face of US banking. Banks are now concentrated in 3 powerful entities: Citi, Bank of America and JP Morgan. The three biggest banks in the country are now bigger than ever, with a combined 31% of all U.S. deposits. Bank of America leads the pack with 10.99% of all U.S. deposits. J.P. Morgan trails only slightly at 10.51%. And Citigroup ranks as the only one of the big three below the 10% cap, with 9.8% of all U.S. deposits.
Now talk about too big to fail. Those banks will never be allowed to fail and they can take all the risk they want. But expect tighter regulation by the government to make them even quasi government entities.
Welcome to the Canadian banking model, where few banks monopolize the industry. Canadian have always called for deregulation to open up banking for outside competition but the government relented. The results higher fees, lousy customer service and high lending rates.
So to my friends in the US get ready for a lousy banking model.
2 comments:
Although I don't know the relative level of the fees and lending rates in Canada, I can tell you that the customer service (at the bank I deal with, the Bank of Nova Scotia) is not lousy. It is in fact exemplary... where did you get the idea that banking customer service in Canada sucks? The Bank of Nova Scotia puts considerable effort into giving good customer service, and I hear TD Bank does too. So you generalization there is untrue, I think.
compared to the level of innovation of IT with European, Japaneses and US banks we are way behind the curve. ATM fees account fees compared to US banks are way high. these all part of customer service not just a smiling teller.
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