You know you need to move the business forward, but an uncertain financial future makes it tough to decide which strategic investments should be made now and which can wait. Seeking the best balance between financial safety and strategic advancement is never simple, and is especially complex today.
Since the pandemic hit, financial institutions have arguably been moving even faster than before on strategic initiatives. Digital channels in particular have been accelerated, which makes it easy to get left behind in that arena. Remaining relevant requires constant strategic investment. At the same time, financial safety and soundness is paramount.
One thing that can make this balancing act easier is dialing in with a bit more precision on what safety and soundness means for the institution. Having more clarity on how much net worth is needed to cover risks can help you gauge which strategic opportunities can be funded now.
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