- Despite improving economic conditions, the business of banking remains difficult.
By Al Dominick, CEO of DirectorCorps — parent co. to Bank Director & FinXTech.
PHOENIX, AZ — For all the talk of bank consolidation, there are still 5,700+ banks in the United States. But let’s not kid ourselves. For many community banks today, earnings pressures + regulatory and compliance costs + the continued impact of technology = a recurring challenge.
While the number of banks in business will inevitably shrink over the next 10 years — perhaps being cut in half — I remain bullish on the overall future of this industry. If December’s tax reform spurs capital spending and job creation by small- and medium-sized businesses, many of the banks joining us here in Arizona stand to benefit. But will the recent tax cut induce companies to invest more than they already planned to? This is but one of a number of questions I look forward to asking on stage through the first day of Bank Director’s Acquire or Be Acquired Conference.
Below, ten more questions I anticipate asking:
- Are FinTechs the industry’s new de novos?
- What does it mean that the banking world is deposit rich yet asset poor?
- Why are certain credit unions thinking about about buying banks?
- In terms of technology spending levels, where are dollars being earmarked and/or spent?
- With respect to small business lending, do credit unions or FinTechs pose a more immediate challenge to community banks?
- What is an appropriate efficiency ratio for a bank today?
- Will big M&A buyers get back in the game this year?
- What are some of the critical items in due diligence that are under appreciated?
- What does an activist investor look for in a bank?
- Is voice recognition the next huge source of growth for banks?
We have an exciting — and full day — coming up at the Arizona Biltmore. To keep track of the conversations via Twitter, I invite you to follow @AlDominick @BankDirector and @Fin_X_Tech. In addition, to see all that is shared with (and by) our attendees, we’re using the conference hashtag #AOBA18.
One Reply to “10 Questions I Plan To Ask During Acquire Or Be Acquired”
What is more valuable, a core deposit funded bank or an asset driven bank? What would a buyer pay more for?
Ok, that was two questions.