For the last few years, online banks/neo banks have been nipping at the heels of traditional financial institutions, offering more and more financial services to consumers. One of those services is deposits, which credit unions are looking to increase these days.
That said, StrategyCorps Director of Strategic Initiatives Bryan Clagett joined us on the show to share some of his insights on how online banks are taking bigger cut of the U.S. deposit market (Evercore: source).
We asked Bryan what’s going on with the online banks increasing their deposit share, as market share of these online banks have more than tripled in the last decade, cornering about 10% of the overall deposit market — equating to $1.26 trillion.
We also asked why is this happening? Are consumers looking elsewhere rather than traditional banking? Looking for higher yields for higher payouts?
One of the reasons, Bryan added: Online banks have limited overhead and regulatory light models and being more tech savvy.
We wrapped it up with what can credit unions do to curtail this trend. So watch and find out -- and let us know your thoughts.
Mike Lawson, Host
Married to a beautiful and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple.