An Aerial View of the Landscape
The results of CSI’s annual Banking Priorities survey reveal that the established financial services industry is still working to fully leverage the growth opportunities of the digital age. A broad cross-section of bankers shared their thoughts after a year in which high employee churn persisted,¹ and deposits at challenger banks continued to grow.² These disruptions were set against a backdrop of ever-present cybersecurity threats³ and costly regulatory enforcement actions.⁴
Banker Concerns Track with Industry Trends
Employee Churn
732,000 employees quit jobs in the financial services sector between May and September 2022.
Source: Bureau of Labor Statistics
New Competition
Though slowing, the number of U.S. neobank account holders is expected to grow 46.4% by 2026.
Source: Insider Intelligence
Enforcement Actions
The Consumer Financial Protection Bureau (CFPB) alone issued over $220 million in civil money penalties in 2022, almost all exclusively related to Unfair, Deceptive or Abusive Acts and Practices (UDAAP).
Source: CFPB Enforcement Actions
Cybersecurity Challenges
The 2022 average cost of a data breach in financial services is $5.97 million, second only to healthcare.
Source: IBM Cost of a Data Breach Report 2022
For the first time, the annual survey included an open-ended question asking bankers what else they would like to share. Bankers participating in the survey provided frank commentary on the new challenges of the “new normal.” They also discussed familiar ones as they identified their plans.
The participants’ revealing quotes appear throughout this report, along with their perspectives on the following issues:
- The current and future state of their institutions’ performance and strategy
- The technologies they’re already using and those they plan to explore
- Their assessment of cybersecurity threats compared to their defenses
- Their challenges meeting existing regulatory obligations and preparedness for those that are impending
Beyond sharing the perspective of surveyed bankers, this year’s executive report presents an environmental analysis of their responses by CSI industry experts. In addition, it provides insight into undercurrents in the present climate that deserve a bit more attention.
