Illustration: Banks getting bigger and bigger. Credit: Nuthawut/Adobe Stock

Historically, small and midsize companies often seemed somewhat reluctant clients of the country's largest banks. Many associated big national providers with rotating casts of relationship managers, inflexible credit policies, and frustrating compliance requirements. To avoid these headaches, smaller companies often turned to local providers, including community and regional banks, which they perceived as offering highly personalized service.

That dynamic might now be changing, as certain trends in the U.S. banking industry are eroding client satisfaction at many smaller banks. As a result, Coalition Greenwich anticipates increased consolidation at the lower end of the financial services spectrum, as community and regional banks work to compete with the biggest national players.

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