After nearly five years of focus on survival, and as the industry is preparing to take advantage of an array of emerging positive economic indicators, we offer commentary in the pages ahead on a set of inter-dependent issues that must be recognized and managed as industry leaders adjust their attitude and embrace a culture of change – a concept not easily accepted in this tradition-bound industry.
With that acceptance - and with more clarity about the implications these new regulations will have on overall operations - banks can turn their focus to building new business models, creating new strategies, and crafting new infrastructures that will connect with existing and new customers. We believe the real debate is not about the need for change, but what changes should be made – and, very importantly, how to bridge from where the organization is today to where it needs to be to compete effectively going forward.
Building on the acceptance of change, bank leadership must execute on their strategy based on their organization’s strength, maintain a relentless focus on customers, team with the third parties that compliment their strategy, make tough decisions on the talent required to carry out the organization’s strategy, and then be ruthless in managing operational performance.
The issues that must be confronted are many, they are connected, and they are evolving rapidly. As much as these issues involve people, processes, technologies, they also deal with attitudes and culture. Without committing to change, the industry’s executives will face significant impediments as they wrestle simultaneously with managing capital, regulation, operations, infrastructure, products, risk, pricing, alliances, and data management.