OCC’s Michael J Hsu: smaller banks can thrive in a digital world

As head of the Office for the Comptroller of the Currency, Michael J Hsu has a unique viewpoint on the US banking system. In what could be one of his last interviews in office, he speaks to Euromoney about the future of the system – and how small and medium-sized banks can survive in an era when technology spend is only becoming more important.

With Donald Trump heading back to the White House, bank chief executives will already be planning their next big strategic moves – and asking whether the former president’s return could herald a new era of bank consolidation in the US.

Their next move will depend on Trump’s choice of agency officials, unrealized treasury losses, and the desire to remain independent. All factors that could block acquisitions.

Yet questions about the future of small and medium-sized banks have come further to the fore since the US regional banking turmoil in early 2023.

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