Financial institutions have gone high-tech
The dominant bank in the Houston metropolitan area is JPMorgan Chase — by far. With a
44.9 percent share of the Houston area’s deposits as of June 2019, it attracted an additional $6.9 billion in deposits compared to the prior year.
The New York financial services company has a long history in the Houston area, having purchased banks that date to the 19th century. But it has done more than gobble up other banks. The bank is widely known as an industry leader in technology, putting it in a solid position to continue to grow while people socially distance and move toward more remote banking.
It also has a commanding share of the region’s commercial accounts, which help draw sizeable deposits, according to
Dan Bass, the Houstonbased head of investment banking in the Southwest for Performance Trust Capital Partners. “They are huge and they’re getting bigger,’’ Bass said. Plus, “their (smartphone) apps are easy to use.”
You name it, and you can pretty much do it on a Chase smartphone app without going to a branch, said Mary Picard, the Houston market director for Chase. The app handles everything from transferring money and sending bank statements to your accountant to opening a new account.
The apps also make it easier for customers to adapt to remote banking during a pandemic. Picard said Chase set up protective shields in front of tellers and allowed more tasks via phone in lieu of visiting a branch. “Technology lets people manage their deposits easier,’’ Picard said. “Our customers are really attuned to that.”
Technology is a strong suit for big banks in general, which can afford to spend more than smaller banks and have their own in-house developers. The top five banks in the metro Houston area gained nearly a full percentage point in market share in 2019 over the year prior, with a 74.6 percent hold on the region’s deposits. In addition to Chase, they are: Wells Fargo & Co., Bank of America, BBVA and Zions Bancorp (Amegy Bank).
Houston-based banks that gained deposit market share in 2019 over the prior year included Cadence Bancorp., Woodforest Financial Group and Allegiance Bancshares.