Your Local Bank may Soon Close
After the financial crisis a few years ago, a new contrast in banking has arisen. While banks like Bank of America and JP Morgan gobbled up local banks, Citibank consolidated its primary operation in major cities and took a different course of action. The newest banking trend is to force customers toward ATMs, mobile apps, and secure websites to conduct their business and to establish key banking centers in heavier populated, and wealthier, cities.
So, pay attention. Once again local banks and stores are under pressure by corporate mega-systems to trim cost and move operations to online options.
Stephen Bird COO of Citibank’s global banking was pleased that Citibank did not have the extra baggage of 4000 physical bank sites. Instead, Citibank tore away the barriers of banking and bank card to fully embrace digital banking. The gamble is likely to pay off in a big way as the trend has already grown by $1 billion in deposits from new customers who do not live anywhere near scant 700 bank locations.
We see new and unrelenting strain and stress on all types of local businesses because of technologic advances that use convenience and mobile app appeal to divert the normal buying habits of consumers. At the beginning of this phenomenon, the invasion was mostly gaming and eBay-type products. Now, it is apparent that there is literally no safe haven that the Internet cannot invade, reinvent, and dominate.
Banks are a constant presence in every community, but could we soon see shuttered bank buildings if the Citibank concept succeeds?
The leaders of the Lextra project foresee a sea-change event pending for local businesses. As the tide rolls out, the new wave will be an oligarchy-type transition that ruins small and medium businesses in every community as it enriches the powerful who amass huge fortunes without concern for the harm to local communities.
Lextra is a much-needed game-changer that empowers local businesses like nothing else. Buy Local programs need to adopt the Lextra and mike it a major emphasis in their area before the impact of Amazon-type businesses destroy the fabric and buying habits of local consumers.