Global Banking Industry Outlook — Mid-year update: 2008Issues on the horizon |
Publish Date:
The global banking industry weathered turbulent times in 2007 and early 2008. After rising interest rates and a decline in U.S. housing prices drove increased defaults among subprime borrowers, investors rapidly lost their appetite for securities based on subprime mortgages and soon for other securitized assets as well. Given the integration of capital markets, the impacts quickly ricocheted around the world, affecting banks, securities firms, and hedge funds in the United States, Europe, and Asia.
The credit crisis has created an unsteady environment for the industry, with each week seeming to bring new developments. The continuing fallout has led to more worries about the outlook for the U.S. and the world economies. Here are the key challenges we see for the global banking industry:
- Back from the brink: Emerging lessons from the subprime crisis.
The credit crisis spurred by problems in the U.S. subprime mortgage market has placed enormous strains on the banking industry. - Building the next-generation branch.
The role of the branch is changing—from a place to conduct transactions to a center for advice and sales. - Developing your talent pipeline.
Ensuring there is consistent, quality leadership in executive ranks is clearly essential to banks' success. - Lightening the compliance burden: Integrated compliance and risk management.
Spurred in part by September 11th, the dot-com bust, and financial reporting scandals, over the last several years compliance requirements have increased substantially in number and scope, imposing a greater burden on financial institutions. - The sustainable bank: Where eco-friendly meets business-friendly.
Many banks have announced environmental initiatives, but few have adopted a strategic approach. - Payments consolidation: Time to act.
Although vital for most banks, payments is increasingly a commodity business subject to price and margin pressures. - SOA: Moving beyond IT.
At a time when banks often struggle to keep aging, disparate systems in step with business needs, service-oriented architectures (SOA) are a way to integrate and streamline the IT landscape.
About the report
The 2008 Global Industry Outlooks offer an analysis and perspective on the key issues facing the financial services industry today. As the business world continues to change dramatically, financial services companies are faced with similar, but evolving issues. To position themselves for success, companies must study the trends impacting their industry and shape their strategies around them.
Page Last Updated
Global Banking Industry Outlook 2008
(1199.69 KB)
