Top banks now dominate online banking

An oligopoly in online banking? At the end of 2007, the top three online banks accounted for nearly 60 percent of all of the customers of the top 10 banks, according to comScore. That seemed like a heavy concentration. Now however Seeking Alpha notes that thanks to the recent consolidation, the top three banks boosted their share to 80 percent. Whew!

Bank of America remains at the top with a more than 30 percent share. Wells Fargo, by dint of its Wachovia deal, boosted its share from 17.4 percent to 27.7 percent. JPMorgan Chase boosted its share from 10.5 percent to 21 percent. Interestingly, comScore also noted that people seem to be spending less time on banking sites. I doubt there is a link, but you would hope that innovation doesn't suffer as result of the strong concentration.

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