Predictions

2014 Banking and Capital Markets Outlooks

Repositioning for growth

What trends are likely to affect the banking and capital markets segments in 2014?

Two reports from the U.S. Deloitte Center for Financial Services

After five years of tumultuous change, it is no surprise that banking and capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear – or perhaps even accelerate.What’s ahead for banks and capital markets firms as we look to 2014?

 

Is it the best of times? Is it the worst of times? Or is it both?

 

While the economy is showing some signs of life, challenges remain for industry executives. Margins are under extreme pressure and business models and product structures are becoming more standardized, mortgages and derivatives being two examples. And regulatory concerns have shifted, from uncertainty over direction to uncertainty over long-term outcomes.

 

So how can firms begin to pivot toward growth amidst current pressures and challenges? How can they drive increased agility into their operations to take advantage of the ongoing uncertainty in the market, rather than simply waiting for more stable conditions to emerge?

2014 Banking and Capital Markets Outlook: Repositioning for growth

After five years of tumultuous change, it is no surprise that banking and capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear — or perhaps even accelerate.

Read the infographic.

2014 Banking Industry Outlook: Repositioning for growth

Agility in a re-regulated world

The last five years in the banking world seem truly extraordinary, even to the most casual observer. While much still remains to be sorted out, especially on the regulatory front, the industry for the most part has taken a number of proactive steps to adapt to the new environment.

Deloitte’s 2013 Banking Industry Outlook suggested that “making hard decisions about where to compete” would be one of the key issues facing banks. Over the last year, we have seen many banks make these strategic choices – deciding which businesses are “core” and simplifying operational infrastructure. The good news is that the path of strategic reconfiguration has become clearer, making 2014 the year that banks might see the dividends from their strategic choices.

Read the 2014 Banking Industry Outlook.

 

2014 Capital Markets Outlook: Repositioning for growth

New models for a new era

After five years of tumultuous change, it is no surprise that capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear — or perhaps even accelerate.

Many observers expected 2013 to complete the post-crisis re-regulation and reshaping of capital markets. Yet developments have been slower than anticipated. Although regulatory clarity increased as the year progressed, uncertainties remained on how best to respond to the new landscape.

But we expect this to change in 2014. As each day passes, the regulatory context becomes clearer. Many major compliance dates, especially in over-the-counter (OTC) derivatives regulation, have passed. Perhaps more importantly, firms have been able to solidify their understanding of new capital requirements.

Read the 2014 Capital Markets Outlook.