While no one can truly predict what’s on the horizon when it comes to mergers and acquisitions in the financial services industry, it’s important to stay informed and ready to pounce. Overall, 2016 was the third best year on record for mergers and acquisitions, and 2018 has been no different. Let’s take a look at a few drivers that could spur further banking M&A activity in the coming months and into 2019:
5 Trends Impacting Mergers & Acquisitions in Financial Services
Reform: With the comprehensive tax reform in place, along with “business-friendly” legislation, policy changes could result in the likelihood of M&A momentum in the future.
Tax “breaks”: The big question looms, will the financial sector actually benefit from the tax reform? In theory, banks will have more capital available, and with that comes more ways to use it. Also, US banks could become more attractive to foreign-owned financial institutions looking to enter the US market (and tax laws).
Foreign entities may also look to expand their footprint and customer base in new geographic markets.
Rise of “Fintech”: The perception of “financial technology” and its advantages continues to evolve in a positive direction. This could spell more investment to “back-end” type systems as well as more cognitive technology such as robotics or AI solutions. This makes financial institutions who’ve adopted these technologies early more attractive to companies looking to pursue acquisition.
Has your financial institution recently completed a merger/acquisition or is looking to secure a deal in the near future?
Below are some important items to keep in mind.
Maintaining relevance: Often, the most successful mergers are ones with the least amount of disruption. Other factors like process and technology investments also play a role in the success of a merger. Is all of the data for your institution still relevant and up-to-date online?
Displaying Market Prominence: Mergers and acquisitions often make a significant splash, creating a large buzz in the press in a short amount of time. Analysts and the general public are quick to make judgements based on a number of factors. One component of this you can control relatively easy is your financial institution’s ratings and reviews. This “market score” should never be overlooked, particularly with a possible merger on the horizon.
Why This Matters to Financial Institutions
Location will always be a huge factor for a potential merger/acquisition. From the customer engagement perspective, consumers have high expectations when it comes to how they interact with their financial institution. But, when you have incorrect, inconsistent or outright missing information about your brand online, it can not only negative impact your search results, it can dissuade current or potential consumers from future interactions.
Harland Clarke’s partner, Yext, has a primary focus in ensuring your institution’s citations are listed on the top websites and correcting any inconsistencies throughout your entire network. At Harland Clarke, we understand cleaning and maintaining your business citation profile can be a time-intensive task, which is why we partnered with Yext to bring their industry-leading solutions to our clients. The platform improves our financial institution clients’ local digital presence, while correcting, enhancing and maintaining all online business listings in real-time.
With the Yext Knowledge Manager, you have a centralized database — a single source of truth — to ensure the facts about your brand are complete, accurate and consistent across all internal systems and everywhere your consumers search. Google, Bing, Facebook and over 100 other digital publishers accept data flowing from Yext as being from the best authority on a brand: you.
From shifting regulations to new entrants in the financial sector, there’s no doubt financial services are undergoing noticeable changes. At Harland Clarke, we’ve worked with multiple clients this year to seamlessly digital rebrand acquisitions. Whether your institution is contemplating a large transition now or in the future, we can make the data updates and rebranding faster and more efficient — saving you valuable time and headaches.