It is a riddle, wrapped in a mystery, inside an enigma.

Winston Churchill said that about Russia - we're talking about the banking industry.

It's in turmoil.

Yet new bank branches are popping up on street corners across North Texas.

So why are banks are on a building binge?

Bank branches are the new Starbucks.

There's probably one going in near you, right?

This can't be cheap.

"[It's] extraordinarily expensive," said Scott McDonald from the SMU's Southwest Graduate School of Banking.

And to the average person, it doesn't particularly make sense.

I mean, if you're like me, you bank online.

Honestly when was the last time you even went inside a bank?

So, why build more?

"If you want to be a large company and you want to be in some of the best markets in the world, obviously Texas would be one of those," said McDonald.

McDonald says the big banks want to do business here.

But, until recently, many were "unknowns."

Branches are like billboards, saying "we're open for business." In a big way.

"If you need to make a presence where would you make it. In the back corner behind a strip mall or on a very busy corner, so people can see you?" said McDonald.

And while many customers do bank online, most customers set up accounts in person - accounts that generate fees.

Charles Wetzel's company, Buxton, in Fort Worth, helps companies identify locations for new stores.

"While it is expensive, I think the upside is much larger than I think the average individual understands," he said.

So how will consolidation in the banking industry effect North Texas?

Wetzel says, if Wells Fargo takes over Wachovia's branches, some Wachovia branches will have to close.

"They're gonna have locations that are literally sitting on top of each other. From a real estate standpoint that doesn't make sense," said Wetzel.

In his analysis of Dallas and Fort Worth, Wells Fargo and Wachovia are too close to each other in 16 locations.

"The hardest hit area is Dallas. There would be ten that are right on top of each other," he said.

Wetzel believes consolidation will slow the bank branch building boom.

But not for long - there's still money to be made in North Texas and that breeds competition.

E-mail dschechter@wfaa.com.