TECH BUYER Jun 2019 - IDC Perspective - Doc # US45126819
Transforming U.S. Banking Landscape and Impact on Overall Digital Transformation Strategy
This IDC Perspective discusses the changing landscape of the U.S. banking and credit union industry and what this means as they lay out their long-term business and IT strategies. For this document, we focused on looking at the numbers of institutions and the asset distribution over the years as well as the staggering rate of consolidation through failures, mergers and acquisitions, and a lack of de novo growth. We provide an impact of what this means for the remaining institutions and how fintech may help stave off further consolidation.
"It is staggering to look back and see how much the financial services industry in the United States has consolidated over the past 20 years and how the vast majority of bank deposits are held by a couple dozen of the largest banks and credit unions," according to Marc DeCastro, research director at IDC Financial Insights. "The need for regional and community banks remains strong, and the technology to allow these institutions to survive for now and thrive in the future is here, so the decision will come down to strategy and execution by the senior executives at those institutions. For the largest banks, the ability to grow organically will be fueled by their own digital transformation strategies, taking advantage of the same digital offerings being deployed by the smaller banks and oftentimes using the same vendors."