U.S. Banking Industry Update: Challenges Facing Banking Industry as Consolidation Continues
This IDC Perspective examines the U.S. banking industry, which has seen significant change over the past decade. This document looks at some of those trends, with an eye as to how technology has not only played a part in shaping the new landscape, but also how it will change the future of the industry. As we have mentioned in previous documents, we are losing almost 100 branches a month, and from the FDIC reports, almost 4 bank institutions a week. While we are fortunate that this consolidation is no longer happening by bank failures, it exemplifies a need for banks to either grow organically, grow through acquisition, or become acquired as the status quo is no longer an option."Never before have we seen such consolidation in our industry as we have seen over the past decade," according to Marc DeCastro, research director at IDC Financial Insights. "Prior to the financial crisis in 2008, we had more banks with assets of less than $250 million than we have total banks in the United States today. This consolidation has made the surviving banks healthier, particularly as they look toward using next-generation technology to offer more services at lower costs to their customers."
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