SNL Financial’s analysis of deposit data 2008 from more than 99,000 branches of FDIC-insured institutions, including pending and completed mergers shows that approximately one-third of the nation’s retail market share is under the control of three top banks – Bank of America, Wells Fargo and JPMorgan Chase.
Bank of America covered 11.31% of national market share and held top spot with $719.8 billion in total US deposits. Then goes Wells Fargo at $711.5 billion with 11.18%, followed by JPMorgan Chase at $649.3 billion with 10.20% respectively.
The recent spate of bank acquisitions and failures has led to significant industry consolidation, increasing market share of the top banks. The rise in Wells Fargo’s market share can be explained by Wachovia s pending deal that brought Fargo s number of branches to 6,779, more than any other bank in the US.
The growth rate is much lower than the 7.88% and 7.84% seen in 2005 and 2006 but a little greater than last year’s rate of 2.54%. Retail deposits increased by 3.72%, to $6.364 trillion.
“Industry consolidation is significantly altering the financial landscape,” says Kris Niswander, associate director, financial institutions group, SNL. “Many national franchises have expanded their branch footprint and improved their ability to meet the needs of a broader and more diverse client base.”
L.D.