As marketing and technology costs have gone up, the industry has consolidated, with the top banks controlling more than three-fourths of the market. Banking executives also are concerned about the slowing economy and the potential for more consumer bankruptcies to lead to higher losses for them. Nevertheless, Delaware's traditional banking and credit card industry still is reporting solid loan growth and profits. State officials continue to aggressively encourage banks to move operations here. While profits continue, banks are not expected to show as much labor growth as they once did.
Banks continue to choose Delaware for operations.
Bankers and industry-watchers attribute that to a skilled work force, an established base of industry, favorable banking laws, and a supportive state government. Targeted services and new technology, particularly the Internet, are fueling the newest wave of banks in Delaware. For example, several insurers and other nonbanks have chartered federal savings banks to use their broad powers to provide trust services and lending nationwide. During the past year, insurance giant American International Group and finance power General Motors Acceptance Corp. have opened thrifts in Delaware. AIG is moving operations to Wilmington's riverfront.