If You Ask Me: A Global Banker Reflects on Our Times
Wriston, Walter B.
2007
Competition Keeps You Awake
How would the individual bank customer stand to benefit by having consumer-type services delivered across state lines? After you've done that, what good is it? | |
If you're honest on this subject, you have to admit that the biggest monopoly in the world is a small town bank. Living in New York City where there's a branch of some bank on every corner, it's difficult to believe. But those of you who grew up in small towns with one bank, know what I mean. | |
We once had a Congressman, named Wright Patman, who grew up in Texarkana (pop. 21,000) where the only bank in town paid 2 percent on savings accounts. It didn't know any better, because there wasn't any competition. This gave the Congressman a rather jaundiced view of all banks, which he enjoyed sharing with us after he got to be chairman of the House Banking and Currency Committee. | |
I think that bank competition--like all competition--is good for the banks and good for consumers. We have a laboratory example in California, where the Bank of America, Wells Fargo, Crocker, and the Bank of California bring extra dimensions of competitive service to small towns. | |
Another banker across the street may not be more skilled, but it keeps both of you wide awake and trying a little bit harder to win customers. That's what I think will happen in dozens and dozens of smaller towns across the country. | |