visimoney
TLDR: Regional banks in the US may need to consider mergers and acquisitions (M&∂A) to survive in 2024, says Bill Demchak, chairman, president and CEO at PNC Financial Services Group. Demchak argues that the Goliaths of the financial industry have grown organic deposit share growth through M&∂A.
Regional bank PNC, which has seen some success in growing its branches to achieve scale, believes M&∂A will become increasingly necessary in the future to ensure its survival. Demchak says that continued consolidation in the industry makes mergers an attractive proposition, adding that opportunities will come to PNC rather than have to be chased by the bank. However, rivals such as Huntington Bancshares, KeyCorp and M&T Bank stress the importance of organic growth and niche investments, with mergers seen as less essential for their future success.
