visimoney
TL;DR
Do regional banks need to buy scale through mergers and acquisitions in order to survive in 2024? Bill Demchak, chairman, president, and CEO at PNC Financial Services Group, believes that larger regional banks have been winning on organic deposit share growth and that smaller institutions may continue to struggle. Demchak argues that PNC needs to move to the next level to increase brand recognition and have the support that larger banks have during times of crisis. Other regional bank leaders, however, are not as convinced that mergers and acquisitions are necessary for future success. Stephen Steinour, chairman, president, and CEO of Huntington Bancshares, believes the bank could achieve success through organic growth, while Daryl Bible, senior executive vice president and CFO of M&T Bank Corp., emphasizes the need to stick to current markets and build share. Some leaders note that acquisition is not the only way to build scale and that creating or acquiring specialized operations may be a better strategy in the near term.
Bill Demchak, chairman, president and CEO at PNC Financial Services Group, believes that regional banks need to buy scale through mergers and acquisitions in order to succeed in 2024. He argues that larger banks have been winning on organic deposit share growth, particularly from businesses, and that smaller institutions may continue to struggle. Demchak believes that PNC needs to move into the next level of scale in order to increase brand recognition and have the support that larger banks have during times of crisis. While some other regional bank leaders agree with Demchak on the importance of scale, they do not see mergers and acquisitions as necessary for success. They believe that organic growth and sticking to current markets and building share are more effective strategies. Some leaders note that acquisition is not the only way to build scale and that creating or acquiring specialized operations may be a better strategy in the near term.
