There may be too many banking branches in the U.S., say analysts.
For every 100,000 U.S. adults, there are about 32 banking branches. Bringing the U.S. branch density closer to what it is in parts of Europe (about 24 banks per 100,000 people) would save an estimated $11 billion annually for the 25 largest U.S. banks.
CLSA Analyst Mike Mayo say Wells Fargo is especially overbranched and needs to save up since the bank’s unauthorized account scandal caused the company to pay out $185 million to settle claims.
Here are the numbers:
32:100,000 | Bank branch density in the U.S.
24:100,000 | Bank branch density in parts of Europe
$11 billion, 25 | The amount bringing the U.S. bank density down to Europe’s numbers could save for the number of largest U.S. banks
$185 million | Amount Wells Fargo paid out to settle its unauthorized account scandal