Super-regional banks are ramping up their fintech activity through a combination of investments, partnerships, and acquisitions. We dive into some of the top players' fintech strategies.
The largest US banks (Bank of America, Citi, Goldman Sachs, and JP Morgan) have developed their fintech strategies over the past decade, each with distinct investment approaches.
More recently, the next tier of banks — “super-regionals,” which manage assets of $50B to $500B — have followed suit. Through a combination of startup investments, partnerships, and M&A activity, some of the largest super-regional banks in the US have ramped up their fintech strategies to fend off upstarts while aiming to gain regional market share, digitize distribution, and launch new mobile-first products.
These banks have largely focused their efforts across a few key fintech verticals, including B2B payments, digital lending and banking, and cybersecurity. From 2014 to 2019, deals backed by super-regional bank investors jumped from just 2 deals to 18.