The financial services industry will remain focused on obstacles and opportunities around business implications related to regulation and policy, changing technologies, cyber security, and global events.
In this post-presidential election era with a trend toward deregulation, and the rollback of some initiatives such as the pending Fiduciary Rule, financial institutions will be left to make their own compliance determinations. Significant strategy shifts will result from policy changes such as the recent corporate tax cuts in the U.S., as this will require a very different set of rules related to financial advising and tax planning. And, post-Brexit strategies remain at the forefront of what is to come in 2018 and beyond. Simultaneously, GDPR (General Data Protection Regulation) will drive big changes in the banking industry.
Opportunities continue to arise with emerging technologies such as distributed ledger (Blockchain), artificial intelligence (AI), and Robotic Process Automation (RPA). FinTech and RegTech companies – those helping firms address risk and regulatory challenges – are becoming mainstream providers to the wider industry.
Cybercrime is ramping up, with more sophisticated attacks that significantly drive monetary and reputational losses. More data privacy regulations are being put into effect to boost consumer trust. Volatility around cryptocurrencies will remain high and while the potential to create value lies in these currencies, it also remains rife for cyber security challenges.
Interest rates, market stability and economic growth all play important roles in the financial services industry both at home and abroad. Global financial institutions that rely on free-trade may face challenges from a shift to nationalist-focused countries around the world.
Having and continually adjusting business contingency plans will be vital to remaining on the upside of all the potential threats, from political gridlock, a slowing of some global economies, and cyber security risks. Continuing to innovate within the industry will require insights beyond legacy business models of the past, and will demand a strategy around talent acquisition and retention. When top-down industry changes affect your business, bringing teams of people together to ideate, learn and strategize will be more important than ever. You can have confidence in a partner that will guide you in strategic meeting design, employee engagement and retention practices, and incentives that work to change behaviors and help people thrive.
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