January 29, 2014
‘Big Four’ is an idiomatic name for the four major banks in a number of countries. The entire banking industry is essentially monopolized by these four establishments. In Australia they are – National Bank of Australia, Commonwealth Bank, Westpac, Australia and New Zealand Banking Group. In the UK – Barclays, HSBC, Lloyds Banking Group and The Royal Bank of Scotland Group. And in the U.S the Big Four are Citi Group, JP Morgan Chase, Bank of America and Well Fargo.
We came across a fantastic infographic that tells us how 37 banks from 1990s became the ‘Big Four’ of US by 2009.
The mega consolidation happened for various reasons. Further there is a need to make banking services more accessible, secure, available for the increasingly mobile consumer, to include financially backward classes, increase speed of delivery across the channels and products, and all this at lesser costs. If the banks don't bring most of these or many of these, the power shift will happen and it will happen for good. Disruptive solutions are marching ahead.