The fastest growing U.S. cities … and how they benefit banks
Published November 7, 2017 11:00 PM
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Updated June 1, 2021 1:42 PM
1 Min Read
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The fastest growing U.S. cities … and how they benefit banks
While the U.S. unemployment rate is low at 4.1%, certain cities are adding jobs at a much-faster clip than others in sectors such as health care, construction and technology. Those markets are providing new opportunities for banks to bring in deposits and make more loans.
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Nashville
Music City is booming , boasting a 6% rise in its employed workforce. Millions of dollars have flowed into local banks, fueling loan growth tied to the tourism, music and health care sectors. Deposits rose 10% over the 12-month period that ended June 30, to $57 billion, according to FDIC data.
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Charlotte
North Carolina’s biggest city is the current runner-up to Nashville, with a 5.5% increase in its workforce. Still a large banking city, Charlotte is also producing jobs in areas such as construction, hospitality and utilities. Deposits increased 8%.
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Tampa/St. Petersburg
The employed workforce rose by 5.4% in this Florida market located along the Gulf of Mexico. The area has a high percentage of health care and professional, scientific and technology-based jobs. Deposits are up 6%.
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Atlanta, which has long been a hotbed for growth, has seen its employed workforce increase by 4.9%, led by professional services, education, health care and hospitality. The city, which is home to 88 banks, had a nearly 7% increase in deposits in the latest FDIC report.
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Miami
A number of foreign investors have flocked into Miami in recent years, opening up opportunities for banks. The city’s workforce has increased by nearly 5% in the last year, fueled by gains in construction, hospitality and health services. The city got overheated prior to the last recession, so its current growth merits scrutiny. Deposits are up by 2.6%.
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Raleigh
Banking in North Carolina’s capital is in flux, as many of its largest local banks have been bought by out-of-state competitors . While deposits are down slightly from a year earlier, the employed workforce has risen by 4.9%. The city recently topped a Forbes list for job growth tied to science, technology, engineering and math.
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Phoenix
Phoenix, which is expected to have significant population growth in coming years, had a 4.5% increase in employed workers. Google, Uber and General Motors are testing self-driving vehicles in the area. Health care and construction are also humming along. Deposits, meanwhile, are up 10%.
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Salt Lake City
The construction and technology sectors are setting the pace for the city’s nearly 4.5% increase in employed workers. In some instances, businesses are feeling challenges filling tech openings. Deposits, interestingly, have been flat (and are actually down if you take into account a big shift in deposits at Goldman Sachs).
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Louisville
The city, located in northern Kentucky, can boast that its population of employed workers rose by 4%, led by gains in professional and business services, leisure and hospitality. Deposits are also rising, increasing by 6.6%.
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Minneapolis
Harsh winters aren’t putting a chill on job growth in Minneapolis, where the employed workforce has increased by 3.3%. Gains have been paced by a rise in education, health services and construction jobs. Deposits rose by 5.8%.
