“Share of Wallet”… The Dark Side of Banking


What is Share of Wallet and how do I hold on to it?

In the banking world, a customer is seen as you would expect, as someone who has done a transaction or holds an account with the bank. The bank, like any other business, wants to gain new customers and does so by promoting their transactions and products.

This is not surprising.

Banks are IN our lives. We depend on them for cash flow, for credit, as a destination for our paychecks, and much more.

Banks have even found ways to make our lives easier. We can put gas in our cars without having to go into the store. We can exchange money with each other without having to write checks.

It is easier than ever to use our money.

This is all very positive. I enjoy these benefits myself.

That’s the bright side of banking.

Let me introduce you to the dark side.

  • In 2012, there was nearly $840B in credit-card debt to banks in the U.S.
  • The average household carries more than $7000 in credit-card balances from month to month
  • The average interest rate on these balances in 2012 was 15.6%
  • The average monthly car payment is $465 over 65 months.
  • Nearly 20% of all car loans today are being written for between 7 and 8 years.

And the picture’s getting worse. The appetite that banks have for this kind of debt to its customers is not decreasing. Banks are getting bigger not smaller.

Despite what their commercials say, banks are moving farther from “knowing” you, not closer.

So, what is “share of wallet”?

Share of wallet is the concept that banks use when they build what they tell you is “loyalty” with their customers. If a bank has two ongoing transactions with you, like a credit-card balance and a car loan, they will say that they have a 50% share of your wallet. If they can get to four or more ongoing transactions, they will say that they own 100% of your wallet.

So what is your wallet?

It’s your INCOME!

Banks desire your income, and payment contracts on your debt are how they get it.

Don’t give it to them.

Do fewer transactions. Pay off your debt. Eliminate any contractual claim they have on your earnings.

Own your income.

Own your stuff.




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