The Time to Focus on the Workforce is Now

Hindsight is 2020. But last year provides foresight for bank executives when it comes to changes to the business and drivers for the future.

The momentous nature of the last six quarters parallels 9/11, now approaching its 20th anniversary, and the regulatory changes it brought into the banking business through the USA Patriot Act of 2001.

The industry then moved forward to the financial crisis and Great Recession of 2007-09, the recovery of which lingered much longer than anticipated. The Dodd- Frank Act and a persistent low interest rate climate followed that crisis.

The pandemic has brought even more changes to the banking sector and its workforce — many of which are likely to persist for much longer than anyone anticipates. We are just now understanding what will be the major variables and factors as the industry moves into this new decade.

On a macro level, there are three prevailing observations about the banking business:

• Consolidation: Although this has occurred for many years, the pace of consolidation may accelerate as banks continue adjusting to the economics of the period.
• Excess liquidity: The multitude of various financial stimulus programs has increased liquidity at most banks.
• Workforce: The pandemic has changed the workplace environment.

Download the industry insight to read the full text.