The traditional full-service banking model has been challenged by many specialized operators. However, the current banking crisis reminds you of the risk associated with a specialty bank. As you are successfully growing into a dominant position, you tie yourself closely with the up and down of the particular industry. 📍2008: the fall of the independent investment banks. 📍2023: the fall of crypto banks and the VC bank. The world is being 𝐝𝐢𝐬𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞𝐝 - every industry. However, what is the most granular level a bank can be truly sustainable? Efficiency of scale. Safety from diversity. Speed with partnership. All of these drive the 𝐫𝐞𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 - not only via M&A, but also through partnerships. How will the banking industry settle after current turbulence? We will witness it. 👉 I talked about the macro trends of disintegration and reintegration on the 1/30 The Lending Link podcast. Link in the comment.
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