Bank On It

The relatively recent boom of opening bank branches in Manhattan is examined in amNew York. With a 36% increase in Manhattan bank branches between 2000 and 2006, it's hard for many people to walk a block or two without passing at least one (though there are more in places like Midtown or the intersection of Second Avenue and 10th Street). Banks will pay higher rents, which makes landlords less willing to continue to rent spaces to mom-and-pop businesses. And basically, a pun explains why there are so many:

Chase spokesman Tom Kelly...pointed out that "economies of scale" make operating 120 bank branches not that much more expensive than running just 90...

He did say, however, that some neighborhoods may have become "over-banked" in recent years.

"In Manhattan there may be more branches than are necessary overall," he said, "but not too many Chase branches."

Well, of course - although there are Chase ATMs in Duane Reades. And in a four block radius on the Upper West Side, there are three Chase banks, one Citibank, one NorthFork, one Commerce, and one WaMu. Anyway, an interesting stat from the article is there are 4 banks per every 10,000 Manhattan residents, but only 1 bank per every 10,000 Bronx residents.

Last August, a NY Times article wondered if the end of the bank boom was coming soon. It doesn't seem like it.

Photograph of Buddha Bank by S.D. on Flickr

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on July 5, 2007 5:17 PM

Comments [rss]

guest

Famdoc, one has to wonder if the banks are taking advantage of high churn in employees to get tax credits for training new hires. McDonald's does this and in fact may have lobbied for it. They make the job simple so they can quickly train new people. And they make the job boring and underpay so the turnover is high.

rdc

I already have a Chase and a Starbucks in my neighborhood so I'd have to go with DR. I'd choose that anyway since I don't use Chase for banking nor do I ever make it to the Starbucks by me.

guest

7: The building at 18th Street and 8th Avenue was torn down only after it burned up first.

Suspicious fire, that.

Kevin Bracken

Duane Reade by far - hell, some even sell decent, cheap food you can, you know, eat.

famdoc

Quantity does NOT insure quality. I am a long-time Chase customer, with personal, business and credit lines at Chase. Used to know the personnel in my branch. Now there are three branches within two blocks of my office. Rotating personnel: seldom see the same person twice. Loud music, few tellers, no a/c in the ATM area, long lines...not to mention that every customer seems to be talking on their cells...even while being served by a teller (not that that's unique to Chase). Is retail banking really that profitable?

guest

Here's a good one - the Starbucks in my neighborhood closed and is now a bank branch (happens to be my bank and I don't like Starbucks...)

What is truly a crime: they tore down that beautiful brick building at 18th Street and 8th Ave in Chelsea that used to have a restaurant on the ground floor, and instead a useless bank branch in an utterly banal new construction goes up in its place.

guest

Duane Reade sells things that most people actually need. Starbucks sells fattening, overpriced coffee in a kind of high scale McDonald's atmosphere. Advantage Duane Reade. Duane Reade is also open later than Starbucks and any bank. One consequence of having so many chains that close early is that many Manhattan streets feel deserted in the evening.

solidago

What!? People find Duane Reade least offensive? I can't think of any business that more consistently ticks me off (with their long lines to reach their ridiculously slow and disinterested staff). I only go into one of those to get to the Chase ATM. I'll take Starbucks.

Toby von Meistersinger

Banks are the new Starbucks

guest

why would it be offensive?

tien

and on one 3 block stretch in greenpoint, there are 8 banks. (hsbc, citibank, bank of america, dime, north fork, chase, bank of new york, and sovereign bank)