What are the most competitive markets for the banking industry? Two recent rankings may provide some clues.
Infographic provided by GOBankingRates.com. Click here for their story on the best and worst states for affordable banking.
Compare this chart to the May 19 release of the best and worst states for banking, by MoneyRates.com, and you’ll find a lot of similarities between the two — 7 states appear in the top ten of both lists. Six are located in the Midwest, which makes me wonder: Could this patch of states just west of the Mississippi River represent a highly competitive market for banks?
I’ll be the first to admit that my thoughts on this issue represent a very quick-and-dirty analysis of what’s going on within a highly competitive industry. MoneyRates based their ranking on stability, defined by bank failures within the state; consumer choice, defined by the number of institutions within a state; service quality, based on the 2014 J.D. Power U.S. Retail Banking Satisfaction Survey; and competitive rates. GOBankingRates looked at average fees, balance requirements and rates for checking and savings accounts. The results are very geographically defined — maybe that’s telling us something.