In its investor presentation regarding its acquisition of ING Direct, Capital One included the following slide:
My take: Are you sure you want to invest more in your bank branches?
June 17 UPDATE: For kicks, I thought it would be interesting to see where the lines would go if the trends extended out to 2011:
- Percentage of consumers banking at a branch (at least once in prior 12 months) dropped nearly 30 percentage points since the beginning of the century.
- The growth rate in online banking leveled off in the mid-90s, then jumped in early 2000s. Why? My guess: The first crop of Gen Yers reaching adulthood.
- The debit card percentage is misleading. Nine of ten checking account households might have a debit card, but that doesn’t mean that nine of ten uses a debit card.
- There’s something wrong with these estimates. Why? The numbers I’ve seen from various sources suggests that the percentage of US households that are unbanked is anywhere from 5% to 15%. Even at the low end, that means that 100% of US households could not have been banking in a branch throughout the 80s and into the 90s. I think the chart would have been appropriately labeled “Percent of U.S. banking households.”