Competition and Tech Evolution Will Continue to Drive Consolidation

Read the original full report from Fitch Ratings here.

Here is a brief summary of the article:

• U.S. banking system has 4,600 FDIC-insured institutions, most of them community banks.
• Community banks provide vital banking services to less populated regions.
• Community banks are generally more profitable than mid-tier and large regional banks.
• Consolidation among community banks is expected to continue due to competition and technology expenses.
• Number of U.S. banks has been decreasing since 1984, with a 4.0% average annual reduction since 2011.
• The number of banks is expected to reduce by 26% between 2020 and 2030.