AI Disruption May Push US Small-Bank Mergers, JPMorgan Says

Lenders that can invest more in AI would be better positioned, while more smaller US banks may be pushed to consolidate, JPMorgan analysts say.

• Impacts from AI have pressured bank shares recently with investors concerned about wealth management business, exposure to software companies, exposure to other companies affected by AI, analysts including Vivek Juneja write in a note
• Lenders that have had flat tech spending raise some concerns about underinvestment; cites US Bancorp where tech spending has been flattish since 2019
• Banks that can invest should be better off, such as “larger money centers and some regionals”
• “There is not ...