Banking Partnerships
According to the FDIC, the most important factor contributing to the earnings gap between community and non-community banks is the ability to generate non-interest income from “activities that are typically not part of the traditional community banking business model.” Expanding non-interest income businesses needs to be a greater priority for most smaller banks.
Nevertheless, as consumers become more sophisticated and financial services become more commoditized, consumers increasingly will act as competitors to financial institutions. New platforms will allow them to service their own financial needs. Overall, Deloitte concludes that the banking marketplace in 2030 will be highly fluid, requiring “innovative business models and alliance ecosystems.”