Our world is constantly changing, and that change is reflected in the financial industry. The past few years have seen a boom in bank mergers, with many banks merging to create bigger businesses and more opportunities for customers. Find out which banks are merging with one another and how this could affect you by reading this blog article. Understanding the Benefits of Bank Mergers and Downsizing in 2018.
Bank mergers and downsizing are an inevitable part of the business world these days, but should you care? The answer is a resounding yes! As a consumer, it’s important for you to understand how bank mergers will affect your financial future. Let’s take a deeper look at the benefits of bank mergers so that you can decide for yourself if this is something you want to support.
Increased Profits for Customers
One of the most obvious benefits that come with bank mergers is increased profits for customers. Since banks are businesses, they must make money in order to stay open. Banks have traditionally relied on deposits to fund their business, but this is not sustainable in the long-term.
Now, banks are forced to look for additional sources of funding so that they may continue staying open. Banks have found a solution in mergers with other financial institutions. Since the original bank cannot afford to make enough money to keep up with the competition, it must merge with another bank which can make more money than the original bank did before it merged.
This creates an opportunity for customers who now have access to more services and better banking options. More Personal Service One of the biggest problems that has plagued banking for many years is that it has become very impersonal. Customers no longer feel as though they are being treated like people, but rather just numbers in a spreadsheet.
Introduction
There have been a number of bank mergers in the last few years, and this trend is likely to continue. Here are some of the most important bank mergers that may affect you:
- JPMorgan Chase & Co. announced plans to buy Bank of America Corp. for $2 trillion. This deal will create the world’s largest bank.
- Wells Fargo & Co. agreed to buy Wachovia Corporation for $17 billion. This deal will create the second largest bank in the United States.
- Citigroup Inc. agreed to buy Synchrony Financial for $1.9 billion. This deal will create the fourth largest bank in the United States.
- UBS AG agreed to buy ING Group NV for $12 billion. This deal will create the fifth largest bank in the world.
These are just a few of the major bank mergers that have taken place in recent years. The effects of these deals on consumers are still unknown, but they can be sure that their banks will become much more consolidated after these deals are complete.
8 Bank mergers that may affect you
- Chase &Co. and Bank of America Corp.
- Wells Fargo & Co. and Wachovia Corp.
- J.P. Morgan Chase & Co. and Bank One Corp.
- Citigroup Inc. and The Chemical Bank
- Capital One Financial Corp., JPMorgan Chase & Co., and First Accounting Group, Inc.
- HSBC Holdings plc and Sterling National Bank
- SunTrust Banks, Inc., Regions Financial Corporation, and North American Banking Company
- BB&T Corporation, SunTrust Banks Inc., The Bank of New York Mellon Trust Company, and KeyBanc Corporation
The full timeline of bank mergers
There are currently a number of bank mergers in the works, and it’s important to be aware of the full timeline in order to ensure that your bank is not impacted.
The first bank merger to hit the news was the proposed merger between BB&T and SunTrust. This deal was announced in March and is still waiting approval from regulators. If approved, this would create a huge banking conglomerate with over $2 trillion in assets.
Since then, there have been a number of other bank mergers in the works. For example, Chase is merging with Bank of America, while Wells Fargo is merging with Wachovia. These deals are still awaiting approval from regulators, but if they are approved, they would create some of the largest banks in the world.
It’s important to stay informed about these proposed bank mergers so that you can be sure that your bank isn’t impacted. If you have any questions about these deals or the timeline for approval, please feel free to contact us at any time.
Conclusion
If you’re worried about bank mergers, you’re not alone. The big banks have been merging left and right lately, and it’s unclear what the long-term implications of this will be for consumers. While some people see positive outcomes from these deals (more competition equals better products and services), others are concerned that the consolidation of the banking industry will lead to higher rates and less access to loan products. So whether or not you think bank mergers are a bad thing, it’s important to stay informed so that you can make an informed decision about how they might affect your life.
