On the regulatory front, there is still considerable anxiety
as to how the strict enforcement climate may play out
in 2014.
With this backdrop, the big questions still remain – how
can banks generate better growth, and how can they
further support return on equity (ROE)?
To generate higher ROEs in this re-regulated world, it is
clear that banks need to do more. Continuing to keep
a sharp eye on cost management and designing more
efficient operating models could be critical.
But following years of heavy focus on compliance and
cost management, banks’ main priority in 2014 is likely
to shift to repositioning for growth – making this year
critical for institutions’ future success. Many banks have
started along this track already. But 2014 may be when
the pace quickens and agile leaders distance themselves
from the pack.
Success in this race will likely require across-the-board
effort:
• Becoming better acclimated to the regulatory climate
• Bolstering risk management practices
• Deploying capital more efficiently
• Innovating across multiple dimensions
• Enhancing customer experience in new ways
• Developing future business leaders
But, as Bob Contri, vice chairman, U.S. financial services
leader, U.S. banking and securities leader, Deloitte LLP,
observed, “Agility might be one of the most crucial
traits in creating success in this highly uncertain and
re-regulated world