What It Takes to Build One of The World's Biggest Banks | Odd Lots

One of the mega-themes of the economy is that the big keep getting bigger. You see it in technology, where the megacap software companies are outperforming their smaller peers. And you see it in finance, where the world's biggest banks keep growing their share within the industry. Across multiple fields, there are clear advantages to size and scale that keep accruing. But what does it take to get to the very top, and what are the real advantages to size and scale? PNC Financial is one of the biggest banks in the country, though not quite as big as names like JPMorgan or Bank of America. So what does it take to grow in such a mature industry? And what kind of advantages accrue to the large players? On this episode, we talk to CEO Bill Demchak in a wide ranging conversation about the state of the industry. He explains why they're still building physical bank branches, why it's not a good time to make acquisitions, and how one bank stands out from another. We also talk about the changing regulatory environment, and what the firm is seeing right now in terms of useful applications of generative AI. Chapters: 00:00:00 - Cold Open 00:01:24 - Joe and Tracy’s Opening Discussion 00:05:10 - Guest Introduction: Bill Demchak, PNC CEO 00:07:06 - PNC’s Growth Strategy and Market Consolidation 00:12:02 - Bank Regulation and M&A Environment 00:13:57 - M&A Philosophy and Market Perceptions 00:18:04 - Organic Growth Strategy 00:19:49 - PNC’s Integration of FirstBank after Acquisition 00:23:54 - Importance of Local Banking on Credit Underwriting 00:25:33 - Trump’s Credit Card Rate Cap Proposal 00:30:12 - Private Credit and Banking Partnerships 00:33:17 - Credit Cycle Assessment 00:36:11 - Silicon Valley Bank 00:38:38 - Fed’s Discount Window and Liquidity Management 00:45:35 - Thoughts on Yield-Bearing Stablecoins 00:48:03 - Basel Endgame Regulation 00:49:16 - AI Implementation in Banking 00:53:03 - Use of AI in Credit Underwriting 00:58:02 - Technology Infrastructure Modernization 00:59:31 - Wrap-Up Watch Bloomberg Vodcasts: https://www.youtube.com/playlist?list=PLe4PRejZgr0MS0Tqk_zQl1LVVTdWuH2Di Watch more Odd Lots episodes: https://www.youtube.com/playlist?list=PLe4PRejZgr0OJbRzA6nWybYiThLJd_ouz Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: https://youtube.com/playlist?list=PLe4PRejZgr0MuA6M0zkZyy-99-qc87wKV Get the Odd Lots newsletter: https://www.bloomberg.com/account/newsletters/oddlots And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg

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