The analysis of the dangers and opportunities stemming from financial consolidation warrants consideration of fundamental facts that characterize current developments within the financial services industry, particularly in the banking sector. An examination of the consolidation trends among banking institutions will be undertaken, followed by an exploration of the consolidation occurring across various financial service activities. Consolidation in the payment and securities settlement industry also occurs through structural and business developments such as alliances, specialization, joint ventures, and outsourcing. At a domestic level, cooperative joint ventures, outsourcing, and specialization have been the predominant forces of concentration. At the international level, fewer correspondent banks and the emergence of new cross-border infrastructures have been key factors.