News

Study: Regulatory environment dampens 2014 outlook among FI execs

March 4, 2014

Despite evidence of a steady path to economic recovery in 2014, a mounting burden of compliance will challenge growth and innovation at FIs. So goes the thinking among 900 senior level leaders representing FIs in the 2014 Fiserv Boardroom Series Outlook Survey.

More than 46 percent of respondents were somewhat optimistic about the overall economy in 2014, with another 42 percent expecting the year to play out about the same as 2013.

"Much of the distress has worked its way out of the banking system, and [financial professionals] can finally look forward instead of in the rearview mirror," said Fiserv VP for insights and advocacy Virginia Heyburn. "Institutions are more nimble and efficient than they were six years ago when the crisis hit, so they're in a much more advantageous position to leap forward to start growing."

Heyburn said the data indicated the need to grow across all categories, not just lending.

"This is a challenge because [FIs] have to differentiate and specialize at the same time," Heyburn said. "That means practicing segmentation to target certain customers with certain products but also differentiating across all of their products and services to stand out."

Lending, compliance, and mobile and online channels were rated as the most anticipated technology investments for institutions. CRM and integration and technology infrastructure were rated as high priorities for larger FIs. For institutions with less than $1 billion in assets, core banking was a higher priority.

Financial professionals rated regulation highest among factors that would affect their institutions in 2014. The challenge of keeping pace with consumer technology adoption — driving demand for more, better and faster digital services — was second, while competition from other financial institutions was third.

Financial professionals think non-traditional financial providers will have less impact on their institutions than other factors in 2014.