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Banking in 2023

The recent failures of Silicon Valley Bank and Signature Bank have made me think why I use a bank.  I imagine others are having similar thoughts.  Banking in 2023 is very different than in 1982(the year I was born).  In 2023 most banking is digital.  I pay bills via auto-debit, electronically transfer cash and occasionally(rarely) withdraw cash.  If I need to borrow money I can apply online at any bank nationwide and choose the best rate.  I want my bank to have great technology, be able to link my other accounts(primarily credit cards) and not have to worry if it will open the next day. 

Here is my personal banking strategy. 

Primary Bank

  • JP Morgan Chase 
    • JP Morgan is a Too Big To Fail bank.  
    • The user interface is friendly, easy to use and allows me to do everything I need.
    • My Chase Credit Card is linked to my checking account. 
    • I linked my other credit card.  It took 30 seconds. 
    • When I travel, Chase has branches in all the big cities and I can withdraw funds if needed.

Secondary Bank

  • PNC 
    • I am from Pittsburgh and have had a PNC checking account for probably a decade.
    • The technology is inferior to JP Morgan and not intuitive. 
    • I am keeping the account open as a backup and if I need to make a large cash withdrawal. 
    • When I lived in Pittsburgh, JP Morgan did not have branches.  I needed this account to withdraw cash.  
    • I have little use for this account and will keep it active as long as it is free.  

I keep very little cash in the bank. My excess cash is invested in a Money Market Fund in my brokerage account or I buy Treasury Bills(either in my brokerage account or direclty with the Treasury).  

Will others follow a similar strategy?  Probably not in the near term but eventually I believe my strategy will be slowly adopted.  We want our lives to be easier not harder and banking is no different.   

A simple question to ask yourself is: What bank do you want to loan your cash to?  

* This post is for informational purposes only.