That said, next year will likely be one of continued
challenge for industry executives. Margins are under
extreme pressure, and business models and product
structures are becoming more standardized, mortgages
and derivatives being two examples. And regulatory
concerns have shifted, from uncertainty over direction to
uncertainty over long-term outcomes.
As firms begin to pivot toward growth, they will be
challenged to remain relevant to their clients, realign
business models, adjust to recent regulations, and
attempt to innovate for growth. Firms will also continue
to make strategic decisions, driven by capital constraints
and demands for improved return on equity, divesting or
acquiring in areas where they believe they can compete
and win. We are seeing some renewed interest in
innovation as well. Overall, banks and capital market firms
will need to drive increased agility into their operations to
take advantage of the ongoing uncertainty in the market,
rather than simply waiting for more stable conditions to
emerge