Barclays, the UK based bank, has decided to move into the US online bank business. The move is a mystery given the competition from American banks, brokers, and financial advisors. Barclays believes that the fact it is in the credit card industry gives it a platform to add customers.
But, competitors Citgroup (NYSE: C), Wells Fargo (NYSE: WFC), JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC) have many more card members. The “big four” American banks have also gathered deposits for years through their branch systems. They have successfully migrated may of those customers to internet based retail bank platforms. Barclays has not leverage to make its initiative successful.
Douglas A. McIntyre