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As we enter 2025, there are a multitude of factors indicating that this year will see a resurgence of merger and acquisition (M&A) activity among banks and credit unions. The primary factors for increased consolidation include economic conditions, a change in administration and related regulatory impact, technological investments, a heightened need for scale, and evolving consumer expectations. In the following paragraphs, we highlight many of the factors that SRM is tracking to help our clients prepare for the new dynamics the industry faces this year.

In 2020, SRM conducted three surveys to shed light on the financial services industry’s approach to navigating the pandemic. Our March and June surveys focused on bank and credit union executives’ responses to COVID-19 and their strategies for delivering uninterrupted service to customers.

Six months into the pandemic, we further rounded out the picture by commissioning leading research firm Harris Insights and Analytics to collect data directly from US consumers. This survey assessed how their banking habits had evolved since global lockdowns began, and how they might continue to change in the future. The results were further analyzed by SRM’s Europe-based Data Analytics team, which specializes in consumer behavior and loyalty insights.

The findings revealed some important differences by segment with key insights for go-forward digital banking strategies.