'This all has the stench of truth about it': Comments of the week
October 26, 2017 2:56 PM
Readers weigh in on Amazon as a bank threat, claims that big banks are poor fintech partners, whether there are too many banks in the U.S. and more.
Brendan Hoffman/Bloomberg
On comments by BB&T's Kelly King that there are too many banks in the U.S.
“I disagree that there are too many banks in the U.S. In fact, there are too few! In 1988 we had 40,000 banks & credit unions, now about 11,000. Many large communities no longer have a single locally based FI located there. In fact 1 in 5 counties in the U. S. only have a single FI that serves that county, & lacks competition. We need more Bailey Brothers' Building and Loans not less.”
Related content:U.S. has too many banks: BB&T's Kelly King
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On opposing sides of the arbitration debate battling over whose data analysis is more accurate in estimating consumer credit costs:
“Given that all of the studies show negligible benefit to consumers, all measures of the cost appear to outweigh the benefit (unless legal fees can be included in the benefit calculation).”
Related content:Fight to kill CFPB arbitration rule could rest on whose data is right
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In response to an op-ed citing regulation as the reason why community banks are declining:
“Regulation is but one factor in the declining profitability and number of banks. For a number of reasons unrelated to regulation, Net Interest Margins have been steadily ratcheting down for 25 years. Consolidation takes out many fixed costs in addition to compliance-related expenses. And network effects favor larger competitors, particularly in the digital era. Consolidation was well underway before the financial crisis and Dodd-Frank; regulatory relief may slow it but it won't halt it.”
Related content:Don't let community banking go from endangered to extinct
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Chris Titze Imaging - stock.adobe.com
On claims that big banks string fintech partners along, don’t pay anything and, worst of all, steal intellectual property:
“This all has the stench of truth about it, I’m afraid.”
Related content:Large banks make terrible partners, fintechs say
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In support of an op-ed arguing that the U.S. needs more community banks:
“It's my view that there is always room in the industry for a well run community bank that provides good customer service. Being ‘well run’ includes having foresighted strategic planning to facilitate that survivability. The biggest survivability issue I've encountered with community banks is strategic planning, especially in closely held banks in which there is no succession planning past the retirement of the patriarch/matriarch of the family, causing many banks to sell.”
Related content:No, there aren't too many banks in the U.S.
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Susana Gonzalez/Bloomberg
On a report that Amazon, and other tech giants, have aspirations to expand more into financial services:
"It’s fair game as long as Amazon has to tackle the same regulatory pressures that banks have to.”
Related content:Banks need to fear Amazon's finance ambitions: McKinsey report
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