Households' increased allocation of savings outside banks raises the question of how this shift occurs and its effects on the banking sector. We show that local expansion of brokerage intermediation, measured as the local presence of securities brokers, reallocates household savings away from bank deposits. Using a staggered adoption of the Broker Protocol in a shift-share instrumental variables design, we find that a 1 percentage point increase in brokerage intermediation reduces bank deposits by 2.4 percent. These outflows coincide with higher local equity wealth, and banks do not offset by offering higher deposit rates or increasing funding from alternative sources. Banks that are more exposed to brokerage intermediation reduce small business lending. The results are not explained by stock market performance alone. Instead, they highlight a novel link between the evolving financial system and household portfolio allocation.