For the same reason Google shutters profitable projects, or why oil drilling companies often pack up but sell the rights to someone else to pull out the dregs, or why Annhauser doesn't make high quality craft brews.
They aren't profitable enough for an organization of that size.
Markets get segmented into tiers. With banks that might create a situation where the easiest lending targets get processed by the highest volume, lowest cost institutions, and the small valuable cases become boutique.
The problem with that is, unlike other boutique areas, the wealthier person can spend a little more for a limited run high quality good. But here the boutique has to sell to the poorest groups, so it's hard to compensate the provider through pricing for the lower efficiencies of being smaller. It might shut down services that the industry would provide if less consolidated.
I'm not defending this, just presenting one possible way this could be playing out even with everyone acting more or less rationally.
They aren't profitable enough for an organization of that size.
Markets get segmented into tiers. With banks that might create a situation where the easiest lending targets get processed by the highest volume, lowest cost institutions, and the small valuable cases become boutique.
The problem with that is, unlike other boutique areas, the wealthier person can spend a little more for a limited run high quality good. But here the boutique has to sell to the poorest groups, so it's hard to compensate the provider through pricing for the lower efficiencies of being smaller. It might shut down services that the industry would provide if less consolidated.
I'm not defending this, just presenting one possible way this could be playing out even with everyone acting more or less rationally.