Can you imagine what it will be like if consolidation takes the banking industry the way of the airline industry?
By Ami Kassar
While I have yet to see any data, if you believe the press reports, there is a massive movement of cash out of smaller and regional banks and into the largest banks in the country. The situation is frightening. Can you imagine a massive bank consolidation – where the banking industry turns into a version of the airline industry? Having a handful of banks to pick from instead of thousands would be an awful situation for business owners and entrepreneurs. Relationship banking would disappear, and we would have only impersonal robots to help us.
As I mentioned in my column over the weekend, I strongly encourage everyone to take a deep breath. If you have deposits in your accounts of less than $250,000 you have nothing to worry about. And even if your deposits are greater than $250,000 you probably have nothing to worry about. My advice is to call your bank and ask them what they do through insurance or other instruments to protect deposits greater than $250,000.
Want to learn more about how to check in on the health of your current bank? Read my 21 Hats column today.