The more the world moves towards an open market economy, the more competition this industry will see. Technological Investment and Analysis Technology continues to play a large role in performing the daily functions of financial institutions. Mergers and acquisitions can not provide the type of improved efficiency banks will require to be competitive in the future. Banks need to continue to invest and develop technology that combines better service with lower costs. The key technology tool for banks is telecommunications.
Banks are already in the process of developing automated underwriting systems.
The industry hopes to achieve higher loan quality and greater efficiency from this process. The banking industry remains attractive through the beginning of 1997. Both stocks set new highs on January 29 th and February 3 rd . Once first quarter results are in, analysts will be able to tell whether the gains will be sustained. I would look to investing in a mid-sized commercial institution that appears to be an attractive pick to merger with a larger institution.