What Causes Profitability?

August 12, 2014
/   Spotlight

Digital Insight proves that digital bankers actually drive increase engagement and profitability with their financial institution.

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Platform Shift in the Making

February 13, 2013
/   Insights

What does the banking industry as a whole have to do with Amazon, Microsoft and Apple? Just about nothing—and down the road, it may turn into a major problem (if it isn’t already). Consider...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

The Financial Services Roundtable recently released another iteration of it’s Fast Facts, reliable, bullet-point research about issues facing the financial services industry. This series is the The Financial Services Roundtable’s first bi-annual Financial Executive Economic Outlook Report, which shows positive expectations for company profitability and capital reserves, despite an increase in compliance costs.

FACT: In a survey of Roundtable member leadership, ninety percent of financial services executives expect their companies’ profitability to increase (58%) or stay the same (32%) during the next six months.

  • 10% expect their companies’ profitability to decrease.

FACT: Roundtable executives are optimistic about employment: nearly three-quarters of executives expect employment to stay the same (36%) or increase (38%) during the next six months, while one-quarter (26%) expect employment at their firms to decrease.

FACT: Capital reserves are at historic highs, and are expected to continue rising.

  • Nearly all financial services executives expect capital reserves to increase (72%) or stay the same (25%) during the next six months.
  • Banks’ average Tier 1 capital ratio set a new record of 13.25% in the third quarter of 2012, according to FDIC data, and bank capital is at $1.6 trillion – the highest level in history.

FACT: Overwhelmingly, financial services executives expect compliance costs to increase during the next six months.

  • 84% of industry executives expect compliance costs to increase during the next six months; 15% expect compliance costs to stay the same; and only 1.6% expect compliance costs to decrease.

FACT:  Government regulation and fiscal uncertainty are the largest challenges hindering company growth.

  • Top policy issues are split between capital and liquidity rules (30%) and the Consumer Financial Protection Bureau (28%).
Copyright © 2013 The Financial Services Roundtable, All rights reserved.

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Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.