The changing structure of banking : a look at traditional and new ways of delivering banking services

In the short span of just ten to fifteen years, Tenth District banking has made the dramatic leap from predominantly a unit banking or single office framework to one that encompasses both statewide branching and interstate banking. This article examines the major factors behind these changes and then looks at the District's evolving banking structure. Overall, the total number of banks operating in Tenth District states has declined by about 40 percent since 1985. This decline, though, has been accompanied by a significant increase in the number of bank branches and facilities. ; Other significant changes are also occurring. About one-third of all banking deposits in Tenth District states is now under the control of out-of-state organizations. In addition, banks are developing and expanding alternative ways for delivering services. For instance, the District's ATM population continues to grow rapidly and an increasing number of banks are opening branches in supermarkets and other retail locations. Moreover, the Internet Web sites of District banks have expanded quickly over the last year both in terms of number and the complexity of services offered. While all of these developments pose a variety of issues and challenges for District bankers and customers, this changing banking framework is opening up new opportunities and will likely lead to a more convenient and efficient banking system, with a broader choice of services.