Online deposits now account for more than 5 percent of all deposits at U.S. commercial banks, and that percentage is expected to increase. Since we know that deposit relationships generally lead customers to develop other types of banking relationships, a comprehensive analysis of competition needs to account for the ubiquity of out-of-market banks with a strong national presence.
Nonbank Competitors On the lending side, we’ve seen nonbanks compete directly with banks for traditional lines of business, including for agricultural loans, one-to-four family mortgage loans, small business loans, and consumer loans. For years, we’ve seen finance  -9companies compete with banks for consumer and small business loans and the Farm Credit System compete for agricultural loans.