Drive for Scale Continues
Last week’s mega bank merger announcement from BB&T and SunTrust will result in the 6th largest commercial bank in the US. These two regional banks are both headquartered in the Southeast and will create a new bank based in Charlotte, North Carolina. This yet-to-be-named new bank is a bet that increased scale will help keep up with larger competitors in the drive for the latest technology. As we’ve seen with other mega deals such as the Fiserv-First Data merger, industry players have concluded that bigger is better when it comes to fintech. Consolidation in fintech and financial services industries will continue as companies seek to gain scale advantages.
Today, BankInnovation reported that BNY Mellon, now the 11th largest commercial bank, is seeking fintech partnerships to remain competitive. Strategic and technological partnerships can enhance the competitiveness of banks and the fintech firms they partner with.