By Adam Jusko, ProudMoney.com, firstname.lastname@example.org
Regional banks BB&T and SunTrust announced today that they will merge, creating the sixth-largest U.S. bank based on assets and deposits. Instead of one company name going away after the merger is completed, they will both go away — the combined bank will have a new name that is yet to be determined.
While it’s too early to say whether this merger is anything more than the typical bank consolidation, the fact that the combined entity will be similar in size to US Bank (though still far behind Chase, Citi, Bank of America and Wells Fargo) suggests that we may see some different and hopefully innovative products in terms of credit cards, savings products, etc.
If we focus on credit cards, for example, BB&T and SunTrust both issue their owns cards but do so on a limited scope, and most of their cards are not particular competitive in terms of rewards offered. Perhaps the combined bank’s bigger size will spur it to become more of a player in this space with new products that mean more choice for consumers and small businesses.
The merger is expected to close in the fourth quarter of 2019.