Dean's Speaker Series. The banks of the future, both executives agreed, would either be small institutions offering just a few basic services such as consumer banking and mortgages. And size is the key to the latter strategy. Smaller banks can't afford to deliver services well in several different ways, and might lose in the marketplace by putting all of their resources into delivering services in a way that customers ultimately reject. Both men said they thought banks were going to offer more money management and investment services in the future, citing the decline in assets being held in savings accounts and the increase in assets stored in mutual funds and other investments.
Nobody saves anymore.
McColl said banks should enhance and add to the services they already offer, rather than jump into entirely different industries, such as insurance. While both executives declined to be specific about their short-term plans, especially regarding acquisitions, McColl made it clear that there were likely to be more big deals in the future, both in the industry generally and with Bank of America specifically.