The reaction to Biden’s executive order on bank deals was decidedly mixed.
The American Bankers Association said in a statement that having nearly “5,000 banks of all sizes, charters and business models” provides the country “with the deepest and most diverse banking system in the world.”
“The depth and resiliency of today’s banking industry was on full display during the pandemic, as banks of all sizes provided unprecedented support to their customers, communities, and the broader economy, while also meeting their rigorous regulatory obligations.”
The ABA said the Biden administration should heighten regulatory scrutiny on nonbank competitors, such as fintechs, that it said “account for a growing share of the financial services marketplace, yet don’t have to meet bank requirements for compliance and community investment.”
According to BusinessofApps.com, fintechs combined had $1.39 billion in global mobile payments revenue for fiscal 2020. It is projected to reach $4.6 billion in fiscal 2025.
By comparison, Truist had adjusted net income of $1.6 billion for fiscal 2020, while Wells Fargo had $4.74 billion in net income.
“We will also encourage the administration to review the barriers currently standing in the way of de novo (new) bank creation and would welcome the opportunity to work together on commonsense policies to increase the number of banks in the country and further expand access to financial services,” the ABA said.