This is an excerpt from an article we wrote for The Financial Brand. Read the full piece here.
Today’s account holders can conduct banking anywhere they want — and that changes everything. They can open a checking account with Capital One 360, a savings account with Ally Bank, an investment account with Wealthfront, and a credit card with Chase. They can pay their bills on Mint.com, get a loan from Lending Club and make payments with Venmo.
It’s true that financial institutions still play a role in most of these instances. But location matters less and less. Soon enough, consumers in the United States will start wondering what’s the point of having more than 14,000 financial institutions across the nation. Having that many institutions may have made sense in an era when location was supremely important. But now? In the digital age, many of these institutions are bound to become less relevant. As Bradley Leimer from Santander puts it, “there will be blood.”
What’s the best way to survive?
It all starts with answering a basic question … Now that consumers can bank anywhere, why would they choose you?