Key Findings
This report has a long list of interesting facts to share:

Evolution of the Retail Banking Industry
This section outlines the evolution of the retail banks industry.

Market History, Market Definition, Market Growth, Market Segmentation, & Key Issues

• Retail banks emerged shortly after the US was founded and held steadfast as the largest financial service companies until the 1980s, when they were challenged by full-service & discount brokers, the market slow down, and now their own strategies
  
• Almost half of all retail banks failed in 1929 due to market activities
  
• The Glass Steagall Act was adopted in 1933, preventing banks from underwriting stocks and bonds
  
• The Bank Holding Company Act was adopted in 1956, further restricting banks by taking them out of the insurance industry
  
• Retail banks lost ground to the full-service and discount brokers in the 1980s and 1990s when consumers became investors
  
• The number of retail banks peaked at 15,100 in 1990
  
• JP Morgan became the first bank to be allowed to underwrite securities in 1990
  
• The Federal Reserve increased the share of revenues that banks could earn from underwriting to 25% in 1996
  
• Banking, insurance, and securities industry firms spent $300 million in 1997 and 1998 on donations to political candidates, including soft money contributions to political parties, and lobbyists
  
• The number of retail bank acquisitions of other retail banks peaked at 504 in 1998
  
• The Clinton administration and the republican congress reached an agreement to overhaul the nation's financial system in 1999, paving the way for the Gramm-leach-Bliley Act, and a repeal of the Glass Steagall Act
  
• Banks have also faced regulatory uncertainty on a number of trust and broker/dealer issues when the Gramm-Leach-Bliley Act was passed in 1999
  
• The market slow down of 2000-2003 helped banks earn profits but again slowed their progress
  
• The passing of the Gramm-Leach-Bliley Act aided retail banks’ foray into investments, removing boundaries between banking, securities, and insurance by allowing all to be conducted by a single company in 2000
  
• Almost three-quarters of consumers believed that the safety level of the banking system was the same in 2003 or better than in previous years despite recent scandals
  
• Retail banks began acquiring insurance agencies, independent broker/dealers, and fee-based financial advisors in 2007 and 2008
  
• JP Morgan Chase acquired the Bear Stearns companies in 2008
  
• Less than one-quarter of the world’s largest retail banks are based in the US
  
• Competition between retail banks and other financial institutions has caused the banks’ share of the ultra high net worth investment market to decline over the years
  
• The percentage of household assets held at banks is 45%, down 50% since 1990
  
• There are 11,426 broadly defined retail banks, including 7,426 traditional retail banks plus 1,000 savings & loans and 3,000 credit unions
  
• Three-quarters of the top 10 retail banks (as measured by assets) are structured as traditional retail banks
  
• Three-quarters of the top 150 retail banks (as measured by assets) are structured as traditional retail banks
  
• Three-quarters of the top 150 retail banks (as measured by deposits) are structured as traditional retail banks
  
• There are 154,250 broadly defined retail bank branches, including 94,250 from traditional retail banks and another 60,000 from savings & loans and credit unions
  
• Deposit levels at credit unions are less than 10% of those at banks
  
• Navy Federal Credit Union may be the largest credit union in terms of assets, but credit unions are dramatically smaller than the largest banks
  
• Credit union deposits have been growing faster than bank deposits
  
• Over half of bank executives are concerned about increased competition from credit unions
  
• Broadly defined retail banks have $12.0 trillion assets, including $9.0 trillion at traditional retail banks
  
• Broadly defined retail banks have $6.0 trillion deposits, including $4.5 trillion at traditional retail banks
  
• Broadly defined retail banks have $6.0 trillion loans outstanding, including $4.5 trillion at traditional retail banks
  
• Broadly defined retail banks generate $60.0 billion revenues, including $45.0 billion by traditional retail banks
  
• Broadly defined retail banks earn $9.1 billion, including $6.8 billion by traditional retail banks
  
• There are 9,000 community banks
  
• There are almost 39,000 community bank branches
  
• Community banks succeed based on their personalize d appeal and customer intimacy that they achieve in their local markets
  
• Almost three-quarters of community banks report increased deposit levels
  
• About half of community banks now offer brokerage services
  
• Of retail banks that offer investment services 79% have their own broker dealers
  
• The number of full time reps at banks is 20,000; an increase of 46% since 1996
  
• There are 3,200 banks offering retail brokerage programs, down 18% since 1996
  
• Two-thirds of retail banks without investment programs are planning to offer them in the future
  
• Fidelity's national financial services leads clearing firms and performs clearing for about 1/3 of all banks
  
• The ratio of series 7 reps to series 6 reps is greater for larger institutions (>$50 billion in assets) showing greater emphasis on series 7 reps in large banks
  
• The primary US bank insurance activities have been the distribution of annuities, credit life, and direct marketing insurance
  
• Over 80% of all insurance premiums at banks in the next five years are expected to come from annuities
  
• Retail bank insurance profitability is projected to rise to contribute 15% of banks' bottom line over the next 10 years
  
• Over 70% of banks with over $100 million in assets are already involved in selling insurance products
  
• The most common type of insurance sold at banks are annuities
  
• 32% of banks sell homeowners insurance
  
• Almost all major bank insurance programs have some sort of property & casualty operation, either by direct mail or through a sales staff
  
• Personal trust assets at banks, net of market appreciation, have contracted by 16%
  
• The average bank-based financial advisor’s production was up one-third in 2005
  
• Financial advisors at the largest banks fared far better, with average production over $200,000
  
• Almost three-quarters of banks reported increases in volumes in their broker/dealers in 2005
  
• Almost all bank broker/dealers were profitable in 2005, up from less than three-quarters in 2003
  
• Personal trust assets at banks, net of market appreciation, have contracted by 16%
  
• Consumer ATM transactions are polarized; 30%-40% have no monthly transactions while an equal amount complete four or more transactions
  
• Delinquent loans at US banks had reached $80 billion in 2002
  
• Less than 10% of all US households buy investment products from their bank
  
• Only 15% of consumers would consider buying an investments-related product from their current bank
  
• Big retail banks spent more than $40 billion acquiring investment banks
  
• There are 21 foreign financial institutions acquisitions of retail banks, up 300% since 2001
  
• The aggregate valuation of foreign financial institutions acquisition of retail banks is $8.3 billion, up 20% since 2001
  
• The average valuation of foreign financial institutions acquisitions of retail banks is $399 million, down over 50% since 2001
  
• The US remains attractive with over half of the world’s 16,000 banks based in the US
  
  

Leading Retail Banks

• Retail banks have large deviations in size when comparing assets & deposits of the top 150 banks
  
• Citigroup employs the most people, with nearly 300,000
  
• After assuming Fleet Boston’s branches, Bank of America widened its lead as the dominant branch network
  
• Bank of America’s acquisition of Fleet Boston resulted in an ATM network almost three times the size of the next largest competitor
  
• With the recent mergers, Bank of America has branches in the most states with 29
  
• Wells Fargo is the leader serving 52 million households
  
• Citigroup, Bank of America, and JP Morgan Chase are the largest banks in assets, each 500-700% bigger than even the 10th largest bank
  
• Citigroup, Bank of America, and JP Morgan Chase are the largest banks in deposits, each 600-700% bigger than even the 10th largest bank
  
• Recently Wells Fargo moved past Bank of America to take the deposits lead in the San Francisco bay area
  
• Suntrust is the leader in credit with $70 billion of loans outstanding
  
• With the addition of Bank One, JP Morgan Chase is the leading credit card lender, with $125 billion of credit card receivables
  
• Bank of America is the leading debit card issuer, with $40 billion in purchase volume
  
• Citigroup and Bank of America are the leaders in private banking and personal trust assets with over $120 billion each
  
• Bank of America and Wells Fargo are the leaders in personal trust accounts with 65,000 each
  
• US Bancorp is the leader in asset management, managing $78 billion
  
• Wells Fargo is the leader in insurance revenues
  
• Citigroup is the leader, serving 100 foreign countries
  
• Citigroup is the leader in net profits, earning $8 billion
  
• Citigroup has the largest market capitalization
  
• Wachovia placed second amongst bank brokers in a survey of broker ethics, performance, and pricing