How regional and community banks can thrive in a fast-changing market

Excel in the new banking landscape with strategic M&A and partnerships.

Regional and community banks, with assets ranging from $20 billion–$100 billion, are at a critical juncture in the financial services industry. Regulatory costs have surged to 10–15 percent of operating expenses, up from 5–7 percent a decade ago1, and the demand for advanced technology and robust services is higher than ever.

While larger banks can leverage M&A to dominate market share, regional banks should consider adopting a more strategic approach to M&A partnerships and fintech integration to ensure their survival and competitiveness.

Agility and differentiation are essential to growth strategies—especially for regional banks looking to modernize technology, strengthen core capabilities, and broaden their customer base while preserving the trust and connection of community banking relationships. 

Download the paper to discover how regional and community banks can navigate the evolving market and secure their future in the financial industry.

1“How to Identify and Reduce Commercial Banking Costs,” finmodelslab.com, April 5, 2025

Dive into our thinking:

How regional and community banks can thrive in a fast-changing market

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Key steps for success

01
Readiness assessment

Conduct a thorough readiness assessment to identify specific needs, whether it's scaling up, improving technology or expanding commercial banking services.

02
Strategic growth path

Determine the right strategic growth path — whether through M&A, partnerships or fintech integration. Each approach has its distinct benefits and challenges.

03
Engage advisors early

Early engagement with advisors is crucial to ensure that deals create long-term value and align with the bank's strategic goals.

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Meet our team

Image of Nadia Orawski
Nadia Orawski
Advisory, Principal, Financial Services Strategy Leader, KPMG
Image of Henry A Lacey
Henry A Lacey
Banking Deal Advisory Leader, KPMG US

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