There is optimism that consolidation could bounce back from a lackluster 2016 as bank stock rally. At the same time, expectations of regulatory easing and tax reform could entice more banks to stay independent, at least in the short term.
The OCC's limited-purpose fintech charter will separate the healthiest fintech companies from the unhealthy ones — leading fintech one step closer to disrupting the incumbents.
The effort to end regulatory absolutism will most likely succeed if it is framed as a pro-economy reform, with members of both political parties driving the train.
Simple innovations -- such as those that would bring the underbanked into the financial mainstream -- are often stymied by regulation, says Bank of America CEO Brian Moynihan.
Nondepository lenders are beating their bank competitors when it comes to both digital innovation and market share in the mortgage industry. As interest rates rise, banks will need to move toward electronic closings and adopt other innovations if they want to stay competitive.
