The Remedy Blog

Banks Must Merge to Create Digital Opportunities

| by Remedy Consulting | 0

We recently read an opinion piece in the ABA’s BankThink column:

Read here.

The article is saying that in the wake of the Suntrust and BB&T merger, that the merger is effectively to gain the economies of scale needed for regional banks to compete with the national banks.

The article goes on to say that the technology employed by regional banks requires more scale in the digital and payments spaces to offer millenials the services they need to remain well-banked.

The author makes some interesting points, but in our opinion, two regional banks merging will not effect the emergence of the open API’s which are necessary for banks of any size to gain a foothold in offering best-of-breed solutions. It is most likely that banks of the size of the merged entity are not developing their own ebanking platforms.

It is more likely that these banks have purchased their e-banking solutions from a provider like Q2 or Digital Insights and it wouldn’t seem to make sense that a regional bank would abandon that to develop their own digital banking platform. The combined bank may have gained enough size to influence their provider to speed up production of the more collaborative technologies that the younger generations will covet.

Trusted Advisor to Banks and Credit Unions

Remedy Consulting helps financial institutions (FI) thrive through best-in-class fintech consulting services specializing in System Selections, Contract Negotiations, Outsourcing/In-House Advisory, Bank Mergers & Acquisitions, and FI Strategic Planning. As a trusted advisor to banks and credit unions located in Wisconsin, the Remedy Team has executed over 700 system selection and vendor negotiations since 2016. Our clients receive a cost reduction on their core vendor contracts and increased efficiency with Remedy's Price Repository. To learn more about Remedy Consulting, contact us today!

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