US banks, big and small, tremble as Bitcoin is launched

According to relevant public documents, US banking giants are beginning to worry about the competition that cryptocurrencies bring to their business.

In its annual report submitted to the U.S. Securities and Exchange Commission (SEC) on Feb. 27, U.S. regional bank WesBanco noted that cryptocurrencies may pose business risks. The bank wrote:

Other banks and financial institutions may offer products and services that WesBanco does not, such as new payment technologies and cryptocurrencies, which could cause existing and potential customers to switch to those institutions.

WesBanco is primarily based in West Virginia, but it also operates in nearby areas such as Kentucky, Indiana and Pennsylvania. It ranks second in assets among West Virginia banks, according to recent market data.

In a similar annual report released earlier this month, Louisiana-based IberiaBank likened the development of fintech (specifically Bitcoin) as a potential driver of cost competitiveness. The bank wrote:

Fintech developments such as Bitcoin have the potential to disrupt the financial industry and change the way banking is conducted. Investing in new technologies to remain competitive will lead to dramatic increases in costs and increase cybersecurity risks.

In their recent annual reports, US banking giants Goldman Sachs, Bank of America and JPMorgan Chase all mentioned cryptocurrencies as business risks. Bank of America wrote in its annual report: "The widespread adoption of new technologies, including Internet services, cryptocurrencies and their payment systems, may cause us to expend significant resources to improve existing products and services."

The news from WesBanco is also noteworthy because it represents the stance of regional banks or small local banks in the United States on cryptocurrencies.