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