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:
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