Surviving in a hostile regulatory environment

by: Alan Jackson

Financial industry regulations consistently earn the top spot on the list of concerns that keep bank CEOs awake at night. With Basel III changes going into effect this year and next, and the influence of the Consumer Financial Protection Bureau ascending, it’s unlikely FI decision-makers will rest easy about regulations any time soon – if ever. Many perceive the regulatory environment to be more than just difficult; it can be downright hostile.

Despite regulatory pressures, however, CEOs of small-regional banks are largely optimistic about the future. Could their relatively rosy outlook have anything to do with the coping strategies many have developed for navigating an ever-changing regulatory environment? It would seem so. Deluxe drew on the expertise of our banking clients to craft our white paper, “Surviving in a Hostile Regulatory Environment.”

We found that for key challenges such as margin pressure, loan pricing and regulatory influences, financial institutions have developed a range of survival tactics. Unsurprisingly, data and technology drive many of these strategies. By using real-time data to check their balance sheets, performance metrics and critical financial reports on a daily basis, banks are better equipped to remain compliant and competitive.

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