Regional Banks See M&A as a Innovation Strategy

The announcement of South State and CenterState Bank merging is proof that there is a growing trend amongst small regional banks who are using M&A as an innovation strategy; merging will allow banks to pool their resources so they can expand their geographic reach and add more funds to invest digitally; “This is a cutthroat business as it is, and now, more and more, you have to invest in the digital and mobile services that people expect,” said Kevin Fitzsimmons, an Analyst at D.A. Davidson, to American Banker. “I think they made it very clear that digital is huge.”; the proposed merger will immediately double the size of both banks and make the new institution the eight largest in the Southeast; they more deals you hear like this will help to encourage others to begin having merger discussions to ensure they don’t fall behind the digital wave. American Banker

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