Financial services executives are likely tossing and turning at night, thinking about the shift to digital, stringent regulations. As the Financial Times reported: “Bank bosses perhaps are worried most about not being publically humiliated by a failing grade.”
We at Perficient know this first-hand, as we regularly advise financial institutions on how to better measure and manage risk as well as allocate capital. Our program oversight and subject matter expertise helps banks effectively anticipate, evaluate, and mitigate the risks they face.
Digital transformation challenges in banking have been well understood and the strategies to address them simple and clear. However, it is becoming increasingly apparent that the industry is reaching a tipping point in the digital transformation journey.
Stress tests, namely Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Testing (DFAST), which are intended to assess whether the largest bank holding companies operating in the U.S., have sufficient capital to continue operations throughout times of economic and financial stress, will continue to be an area in which companies will need to invest throughout 2017.
At the same time, firms will closely watch industry regulations to see if anything changes with a new president in office. Although we are not sure what Donald Trump as president means to financial services companies, many headlines suggest that he will, in fact, be very good to them. In particular, pundits believe it’s possible that a significant amount of deregulation could result from his presidency. However, only time will tell.
To read about the 14 other trends that we believe will take place in the financial services industry in 2017, click here or simply fill out the form below to download our newest guide.