What Do Urban Trends Mean for Banks?

A recent article describes the context of urbanization around the country before examining the implications of the trend for the decisions made by bankers—i.e., where and how to invest—especially given the realities of the post-recession economy.

2 minute read

March 25, 2014, 2:00 PM PDT

By James Brasuell @CasualBrasuell


A recent article by John Engen for American Banker manages a lot of tasks. First comes the work of citing the relevant facts regarding the trend of migration toward U.S. urban centers. To do so, Engen cites the growth of urban centers around the country between the years 2010 and 2012: “In total, 16 of the 20 largest U.S. cities experienced growth rates faster than their surrounding suburbs between 2010 and 2012, according to census data.”

Then Engen goes on to describe the implications fo the trend to the business decisions of banks—not only where and how to invest, but how to structure the bricks and mortar assets of business operations. “For banks, the budding movement of people and businesses to the cities is playing out against a backdrop of sluggish economic growth, harsher regulatory oversight, rapid technological change and earnings pressure. Cost controls are a priority, which dovetails nicely with the behavior of younger city dwellers, who generally are comfortable accessing their banks online or via mobile devices rather than visiting branches.,” writes Engen. Engen quotes a variety of executives and analysts on the subject of how urbanization might influence future practices of the banking industry. Some examples:

  • “‘Whatever growth we're seeing in cities clearly matters less than it would have a decade ago, simply because of the adoption of digital channels,’ says David Stein, executive vice president and head of retail banking for Green Bay, Wisc.-based Associated Banc-Corp, which competes in Chicago, Minneapolis and Milwaukee.”
  • “Clayton Baker, head of consumer financial advisory services for Ernst & Young, acknowledges the recent bump in urban populations but says he knows of no set ‘urban strategy’ for banks, no blueprint to follow for success. Banking is banking, to a certain extent. ‘There isn't just a model you can overlay on an urban market,’ he says.”
  • “‘We put out a caution to our lenders two years ago: When it comes to multifamily, you've got to be very careful,’ says Joseph Hoesley, vice chairman for commercial real estate at U.S. Bancorp, which has been lending to more city projects in recent years.”

Tuesday, March 25, 2014 in American Banker

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight