PPB November 2019

Market Snapshot While the financial services industry is poised for future growth, it’s also in the middle of a digital revolution. Consumers are increasingly moving away from cash transactions in favor of digital payments. Roughly three in 10 Americans say they don’t make any purchases with cash in a typical week, which is up from 25 percent in 2015, according to Pew Research. When people carry cash, it’s usually not much. U.S. Bank found that 76 percent of Americans keep less than $50 on hand. About half of Americans have less than $20 in their wallets. Considering that cash isn’t king anymore, you can expect to see fewer ATMs and brick- and-mortar banks around your community. Research from Expert Market predicts total extinction of bank branches and ATM locations by 2041. Another trend to watch in this industry is a decline in customer loyalty. Americans are becoming increasingly more amenable to changing their financial services provider. Accenture found in a survey that 31 percent of banking customers would consider banking with Facebook, Amazon or Google if these companies offered the same kind of services they currently use. Financial technology firms such as Acorns and Robinhood are already capitalizing on this mindset by offering apps that support investing or other forward-thinking financial services. And Apple recently introduced its Apple Credit Card which combines cash-back rewards on purchases with a consumer-friendly app. Younger consumers are especially agreeable to change. One in three Millennials say they’re open to switching banks in the next 90 days and about the same number say they will not even need a bank in the future, according to PwC. Even though consumers are moving away from traditional banking, many still want the human interaction that comes with walking into a physical location. Marsh & McClennan found that one in four people don’t feel comfortable opening an account with a bank that doesn’t have a local presence. When people crave interaction, banks and financial services companies can use promotional products to reinforce a personal touch. The Top 15 Biggest Banks In America The largest 15 banks in the United States hold a combined total of $13.7 trillion in assets. For perspective, this wealth is enough to buy every person on the planet a 13-inch MacBook Pro—and still have money remaining for accessories. See below for the largest banks in the U.S. by assets. JPMorgan Chase & Co. $2.74 trillion Bank of America Corp. $2.38 trillion Citigroup Inc. $1.96 trillion Wells Fargo & Co. $1.89 trillion Goldman Sachs Group Inc. $925.35 billion Morgan Stanley $875.96 billion U.S. Bancorp $475.78 billion PNC Financial Services Group Inc. $392.84 billion TD Group US Holdings LLC $384.07 billion Capital One Financial Corp. $373.19 billion Bank of New York Mellon Corp. $346.13 billion Charles Schwab Corp. $282.82 billion State Street Corp. $228.33 billion BB&T Corp. $227.68 billion SunTrust Banks Inc. $220.43 billion Source: Bankrate 15 9 12 6 2 14 8 11 5 1 13 7 3 10 4 | NOVEMBER 2019 | 59 GROW