New Cornerstone Research: Attracting Qualified Talent is Community Financial Institutions' Greatest Concern for 2022
The 'Great Resignation' Is a Side Effect of the 2021 Revenue Recession
Jan 25, 2022, 08:44 ET
SCOTTSDALE, Ariz., Jan. 25, 2022 /PRNewswire/ -- A new research report from Cornerstone Advisors reveals that attracting qualified talent is the top concern for banks and credit unions in 2022. This concern was cited by 65% of surveyed bank and credit union executives, up from just 19% in 2021.
What's Going On In Banking 2022: Rebounding From the Revenue Recession, authored by Ron Shevlin, chief research officer at Cornerstone Advisors and noted fintech expert, is a study conducted annually to identify key industry trends as well as the outlooks, concerns, and strategic priorities of community-based financial institution executives.
"The 'great resignation' is real," said Steve Williams, president of Cornerstone Advisors. "Bank of America's $25 an hour announcement is a signal across the bow that we're going to have to do more with higher paid people using technology."
In addition, Williams said, not executing on creating a "nextgen" workplace could very well be the constraint to growth for banks still operating in their traditional models.
The report explores a wide range of banking industry trends, including new products, M&A, fintech, payments, digital transformation, and emerging technology.
Among select study findings:
- The regulatory burden and cybersecurity also rank high on FIs' list of concerns.
- Three in 10 banks and a quarter of credit unions plan to implement real-time payments in 2022. However, 37% of banks and 42% of credit unions haven't determined their RTP strategy.
- Roughly one in 10 financial institutions plans to launch cryptocurrency investing/trading services in 2022. Currently, just 1% of banks and no credit unions offer the service.
- FI executives who see fintech companies as a significant competitive threat increased in 2022.
- More than half of banks and nearly two-thirds of credit unions see an improved environment for M&A deals in 2022 over 2021.
The report's subtheme is Rebounding From the Revenue Recession. "Bank's spectacular profits in 2021 mask a deeper problem," Shevlin maintains in the report, "a revenue recession, which has been happening over the past three years on three fronts: payments displacement, the impending mortgage revenue drop, and the overdraft fee free-fall."
Rebounding, according to Shevlin, will require banks and credit unions to deliver new products and services, serve new customers and geographic markets, and employ a new strategic focus. "The 'troublemakers' are already doing it," he concludes.
What's Going On In Banking 2022 presents data from a survey of 300 bank and credit union executives conducted in the fourth quarter of 2021. It is the seventh in a series published by Cornerstone Advisors.
Cornerstone Advisors, a management and technology consulting firm, shows banks, credit unions, and fintechs how to reach the next level of performance through smarter technology decisions, reengineered critical processes, and meaningful business strategies.
Contact: Cate Pitts, Editorial Director, Cornerstone Advisors | 480.425.5203 | [email protected]
SOURCE Cornerstone Advisors
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