Not since the Great Depression have banks and brokerages suffered such rapid dislocation and forced consolidation. Mergers, acquisitions and outright failures have the industry cutting thousands of jobs, outsourcing services and shuttering locations and divisions. Silver linings aside (and there are some), the impact of this revolution on everything from fees to customer service to security doesn't promise to make things better for consumers.

Make no mistake, the scope of change is vast. JPMorgan Chase (JPM) buying Washington Mutual, Wells Fargo (WFC) gobbling up Wachovia (WB) and Bank of America (BAC) grabbing Merrill Lynch (MER) are just a few of the biggest deals roiling the industry. Citigroup (C) last month inked a contract to outsource around 12,000 jobs to India. Morgan Stanley (MS) is planning layoffs. Fidelity, the second-biggest discount broker after Charles Schwab (SCHW), is cutting thousands of jobs. Plenty of other fund companies are doing the same.

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Fees

Of greater concern is the reality that less competition is not good for customers. The National Consumer League, the nation's oldest consumer group, says fees and charges for critical basic services are already too high. Fewer banks means fewer choices for consumers and freer range for institutions to impose more onerous and punitive fees, says Sally Greenberg, executive director of the NCL.

"This is going to squeeze consumers and put them in a position where they are unable to shop around and get competitive rates," she says. "I can only imagine that this will press consumers harder at a time when they really need a break." After all, fees are a big driver of business in the best of times. Even before the banking crisis erupted, Bank of America raised ATM fees for outsiders to $3 a pop.

Branches / ATMs

True, in some cases consolidation does add convenience. The combination of WaMu and Chase allows customers to access more than 14,000 free ATMs, for example. Chase's aim is to make the transition for WaMu customers as seamless as possible, says spokeswoman Nancy Norris. WaMu checks and debit cards will automatically switch over, with customers able to still use their old WaMu checks until they run out, she says. Furthermore, WaMu and Chase only overlap in New York, Chicago and Texas, so branch closings won't affect most folks.

But even though Chase maintains that the merger will result in greater access to ATMs and branches, it's hard to believe that many customers' favorite locations and machines won't close as redundancies are eliminated. (We experienced it firsthand when Chase and Chemical merged a few years back.)

Scammers

The bigger challenge, Norris says, is protecting account information. More than ever, consumers need to remain vigilant against spammers, phishers and other grifters who are trying to prey on fear and confusion. "We have already seen an increase in phishing attacks," Norris says. "Chase will never ask for your account information by phone or email. Obviously we don't need it; we already have it."

In October, in response to the upheaval in the financial-services industry, the Federal Trade Commission issued a special alert targeted at bank and brokerage customers. The bottom-line advice: Keep your personal information personal no matter how legitimate the email or phone message purportedly from your bank seems.

Security

Indeed, mass layoffs and IT outsourcing are remarkably disruptive to security, especially at a time when criminal activity is sharply on the rise, says Rob Enderle, president of Enderle Group, a technology advisory firm. "When you're doing a lot of stuff this quickly and you are understaffed, bringing in temps and outsourcing on the fly, things fall through the cracks," Enderle says. "They will make mistakes. Honest mistakes, but mistakes just the same."

Enderle recommends obtaining a credit card designed solely for online purchases and to check all your financial statements carefully and often. Crooks and honest errors are only going to put your finances and identity at greater risk.

If there's any comfort to be had, banks and brokerages have been buying each other up at a feverish pace for two decades now. They know the drill. Whether they can manage it under these conditions and at this pace is something else. So, as ever, caveat consumer. At the end of the day, the only one looking out for you is you.