Banks today appear to be under siege from new technology, nonbanks offering lending products and the unbundling of banking services. Ultimately these nonbank singular service line businesses get hit with losses, lack liquidity to continue to grow, get acquired by big banks or begin to diversify into other banking products (i.e. deposits). The related phenomenon of unbundling and re-bundling services is driven by regulation changes as the nonbank businesses are not subjected to the same regulations as the banks. History tells us that this cycle will continue to repeat.
For more information, please see the American Banker article written by Marc Hochstein at http://www.americanbanker.com and for more information please contact James Dowling, Manager and member of Marcum's Financial Institutions Services Group.