Dave Vang, finance professor at the University of St. Thomas Opus College of Business, recently spoke with the Minneapolis-St. Paul Business Journal about the competitive market of mid-sized banks.
From the story:
“That’s a very competitive market,” said Dave Vang, professor in the department of finance at the University of St. Thomas Opus College of Business.
Vang said that one of the disadvantages of being a mid-sized bank is carving out a sector of the market.
“The smaller you are, the more niche your customers can be, so you can be kind of insulated from competition,” Vang said. “But if you’re medium size, you are kind of competing against big banks, as well, and it’s hard to be niche.”
Unlike small banks that can separate themselves from competition geographically, Vang said mid-sized banks tend to focus on specific market sectors.
“They sometimes have to do more specialization in specific industries,” Vang said, adding that these banks often need to emphasize to customers their expertise in particular areas.