Recent turmoil in the banking sector has elevated the risks facing financial services companies industrywide and accelerated their need to boost their data and analytics capabilities. Banks, credit unions and other financial services companies already faced numerous economic and market challenges, including higher interest rates, inflation, margin compression, regulatory pressures, workforce shortages, shifting customer expectations, and increasing competition from nontraditional service providers. While inflation is expected to slow , the Federal Reserve recently affirmed long-running concerns about the potential for an economic downturn. The Federal Open Market Committee predicts the failures of Silicon Valley Bank and Signature Bank in March likely will contribute to a recession later this year. (More recently, First Republic Bank, which, like Silicon Valley and Signature, suffered a massive deposit run , also failed.) Executives at banks and other financial services companies must ensure their institutions stay on top of evolving challenges. Using data and analytics to monitor trends, project the potential impact of various changes, and determine how best to respond is vital. Many institutions have begun a digital transformation over the last few years, working to automate processes and enhance digital services for customers. Leaders should build on that momentum and implement predictive […]
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