CFO Focus: Financial results up, confidence in managing change down
Findings from 2019 CFO Outlook survey point to opportunities to boost performance management in a shifting business environment.
Even as institutions reported improved financial results last year, CFOs’ confidence in their institutions’ ability to manage the financial impacts of an evolving business environment decreased in 2018, according to a recent Kaufman Hall report.
The report, 2019 CFO Outlook: Performance Management Trends and Priorities for Financial Institutions, is based on a nationwide survey in late 2018 of executives from credit unions, banks, and other financial services institutions.
The report notes that although the Federal Deposit Insurance Corp. reported a 30 percent increase in net income year over year for the financial services institutions insured by the agency, those banks and savings institutions also face increased exposure to interest-rate and credit risk, as well as emerging competition from “neobanks” and other nontraditional competitors.
The combination of disruptive economic forces and increased competition has had a significant impact on senior executives’ confidence in their institutions’ ability to make course corrections in response to changing market conditions:
continue reading »
