Where the hell did all these banks come from?

[toddaa]

On my commute home from work (a short 5 mile distance), there is one three block stretch that is nothing but banks. And the empty lots nearby appear earmarked for more banks. I'm not talking about little ones, either. I'm talking about three and four story big ass banks with what appears to be lot's of conference rooms and executive offices on the top floors. Frankly, the sudden appearance of all these bank buildings is starting to creep me out. Any economist types know why we need this many banks?

[babylonsister]

1. I'm noticing pharmacies; ironic considering the state of healthcare

in this country. :eyes:

[MuseRider]

2. Banks and churches here.

Everywhere, one along side the other. Big ones, just like you mention. I have never seen churches as big as the ones being built now. I guess it makes sense they should be together with the banks.

[salvorhardin]

3. It's like a Daniel Pinkwater story or something

Invasion of the Poly-Cotton Blend Business Suits.

I've noticed the same thing locally. You'd think with all the ATMs out there now we'd need less banks, but instead they seem to be popping up everywhere. Even in our small upstate NY cities with declining populations.

[OxQQme]

5. topless dance clubs here....heh

[sandnsea]

4. Takes alot of monopoly money

to equal a dollar. Gotta put it somewhere.

(I have no idea, just made that up)

[rucky]

6. No new buildings, here. Businesses are just abandoning them.

that's even creepier.

[Deja Q]

7. Offshoring. Abandoning the gutted fish.

What's to happen to the fish?

[catmother]

8. i live in phoenix, arizona. if you drive to sun city (that's a large

retirement area) you see banks every where -- like 4 on the street one on each corner and one on each side of the street. i always figure those are the folks with the money. hope i have as much as some of them when i'm retired. lol

[pitohui]

9. same here, banks and walgreens both

there's one or both on every corner!

supposedly every single omni bank was destroyed by katrina in our area, now their little omni bank trailers and buildings have popped up like mushrooms

they should clone that technology, we'd all have brand new houses by now if we could learn that trick

[Rene]

18. If you're lucky enough to have an Independent Pharmacist in

your area...you should support him/her anyway you can.....even if it costs a bit more for what you buy.
We've got one hanging on here....and it's v e r y difficult for him.
I was in his store the other day when his backup pharmacist came out from the back, and stood off to the side explaining something quietly with his customer.
Later that same day I was in a CVS where the female pharmacist was shouting info across the room back and forth with a customer......such a lazy a--, she wouldn't walk a few feet to share a little conversation... yech.

[Ilsa]

10. Independent I guess?

Branches tend to be one story facilites from what I've noticed.

[patrancus]

11. The Banks follow the money

The reasons for all the new banks sprouting up across the Republic are to make money, Banking Deregulation over the past 15 years coupled with plenty of cash around to deposit into them. Banking used to be a business that provided many services for little or no cost, beginning about 15 years ago Banks went through their reformation and became public for profit business centers, responsible to their shareholders who expect that they charge their customers for everything and anything they are able, boosting earning per share keeping owners and shareholders fat and happy.

[pitohui]

12. yeah but where are they getting the cash?

they are paying you to deposit money and open new accounts around here

how the hell do you make money like that?

one of my banks, now owned by chase, paid me $50 to open a checking acct then $75 more to open a savings acct

another bank put me in a hurricane of money to grab what i could get (a few bucks) for opening an account

others are giving $25 or $35 if you open accounts

others are giving CDs at above normal interest rates

it seems to me they DON'T have enough cash deposits or why would they be bribing you to make deposits?

this is way beyond the good old days of they gave you a clock radio and a toaster!

one of my banks just put out a complete set of luggage for new account holders!

you get even more cash if you allow them to direct deposit your paycheck to the new account

a lot of people make a little extra cash by changing accounts, might as well if they're giving money away for that small amount of effort!

[bbinacan]

13. Banks are expanding

the services they offer their clients. They've grown beyond checking, savings, and car loans. They now offer new things like mortgages and investment services. They're trying to offer a turn key approach to the client.

[pitohui]

14. ok but again?

does there have to be a different bank building erected for every single individual who takes out a mortgage?

[bbinacan]

16. See my latest comment. n/t

[bbinacan]

15. Banks also tend to

cluster. If one branch goes up, you can expect competing banks to install branches near that location.

[ArbustoBuster]

17. It's customer research in action

The number one reason why people patronize a bank is convenience. Literally, they'll open an account at a bank that's near their home or near work, or on the way to or from the grocery store. This is the reason why so many banks open branches inside grocery stores, for instance.

Therefore, banks need to open lots of branches in order to be near as many customers as possible. It's capitalism working for the consumer, for once, putting banks closer to the places we live or work.

[toddaa]

21. That assumes they have customers

The two biggest ones have empty parking lots. In fact, one appears to be abandoned and it was built over a year ago. No signs of life anywhere.

The last time I went into a bank was probably two years ago when I had to get a new ATM card because my old one had a bad strip on it and I wanted to keep my PIN number. Apart from a safe deposit box, I can't think of a reason I'd ever go back in one.

[benddem]

19. Banks here

they are sprouting like weeds. Given that the US has one of the lowest savings rate...they must be just lending money. We also have WAY to many of those payday check cashing scam places. Two are right next to each other on the main drag.

[Sal Minella]

20. When I was a kid in school, savings earned 6%, loans cost 12%

and bankers built great huge homes on that 6% difference.

What is the percentage difference now between what you get on savings and what it costs for a loan? That's what's building the new banks, I suppose.

[spindrifter]

22. We have loads of check cashing/pay day loan

places. I find it very weird, as they are in neighborhoods where that is not something the folks are likely to need. I never see anyone in them, either. The other thing that is weird about this is that if you notice, most banks have scaled back and discourage human contact--you do business with your ATM card or you do internet banking or you have your paycheck deposited by a computer service. And the banks are outsourcing their "clerical" functions overseas.
We had a bank that got bought out several years ago and eventually no bank wanted to lease the location so someone turned it into a grocery store. Maybe that's on the horizon for the flourishing new-built banks.

[On the Road]

23. One Reason is That Banking is Interstate Now

Say for example banks tend to look at towns with a population over 20,000 as capable of supporting a branch. If your town has grown and recently pass that threshold, a lot of out-of-area banks may suddenly find your area on their radar screen. (It's true on a smaller scale if you live near an area of recent development with new houses and apartment buildings.)

If there are too many banks for the market to support, some of them will eventually go out of business. But that's one way it might happen.

[skids]

24. They're not banks.

Consider them "paper shuffler wilderness asylums." They provide a nice, air conditioned natural habitat for the "up-nosed North American paper shuffler," a species which, though it currently has a thriving population, is being threatened by the increasing inability of the environment around them to provide them with new pairs of black socks and leather attaches -- oh and less important things like food and gasoline.

[fed-up]

25. Banks sprouting from real estate interest $$$-prices dbld last 4 years n/t

[JNelson6563]

26. All of those ARMs are maturing

Those many mortgages foolish and desperate Americans got at nice, low rates are maturing and will continue to mature. Interest payments will continue to go up just like the credit card rates. When you're swimming in dough and there is no end in sight to the inflow of the stuff, you build buildings to put folks into who will count it.

Easy peasy.

Julie