Summary:
While uncertainty is the big expectation in 2024, bankers do have opinions on what areas are most concerning to them. A recent survey by the Conference of State Bank Supervisors found that 89% of community bankers view net interest margins as an extremely important or very important risk, followed by the cost of funds (87%), core deposit growth (84%), and regulation (81%).
At this juncture, the general expectation for 2024 is that growth will be slow and extraordinary effort will be needed to meet revenue and bottom-line targets. SRM turned to its in-house experts, particularly those engaged in critical projects with bank and credit union clients, to look at several areas of consideration that could provide that extra edge toward meeting your numbers in 2024.
Report Highlights
- Undertake a Digital Maturity Assessment: A maturity assessment of your digital infrastructure is vital, regardless of where you are in the budgeting process – or if you have moved on to the execution phase.
- Come to Terms with Artificial Intelligence: While there is some concern that the burden of navigating a new, complex regulatory environment will stifle innovation and open-source development, there is broad consensus that regulation is important and necessary.
- Adjust to Shifts in Debit Routing: Financial institutions should examine the routing of their card transactions, keeping in mind the overall impact on interchange revenue.
- Understand Fintech and Delivery Models: The continuing evolution of the fintech industry is delivering an ever-increasing array of innovative solutions that the major core processing platform providers are slow to keep pace in terms of integration.
Cody Harrell
Managing Director,
Community FI
About The Author
Cody leads a team of expert consultants, reviewing and negotiating payments for vendor contracts for financial institutions. He specializes in a number of project areas including Pin/POS processing, card branding, and debit/credit card processing.
Mark Mrva
Senior Director
About The Author
Mark brings a decade plus of experience to support financial institutions in vendor sourcing, cost reduction, contract negotiation, and project management. Mark excels in commodity, vendor, and contract management in BPO, consulting, marketing, and general professional services.
Connor Heaton
Vice President, Intelligent
Automation and AI
About The Author
Connor leads client projects in the areas of AI and Intelligent Automation. Connor specializes in leveraging disruptive technologies to help financial institutions build efficiencies and revolutionize their operations. He also delivers engagements focused on modernizing strategy, operations, and organizational design in collaboration with our SRM Europe team.
Mike Langenkamp
Director
About The Author
Mike most recently worked as a Principal at Catalyst Consulting Goup where his practice focused on core, digital, and related ancillary services. Additionally, Mike consulted on business process improvement, enterprise risk management, M&A, and strategic services. Mike’s career has included work as a banker, vendor, and consultant at Fiserv.
Russ Bourne
Chief Operating Officer
About The Author
Russ manages relationships with existing SRM clients and ensures they receive maximum benefit throughout their engagement. He also oversees SRM’s team of analysts providing critical research and detailed client performance data assessments.
Keith Ash
Managing Director
About The Author
Keith has 25 years of payments expertise across issuer, network, and processor roles. He began his career with Household Bank, supporting the launch and growth effort of the GM cobrand through Household Credit Services. He later joined First Data/Concord EFS as the SVP of Operations and Implementations for their Northeast Platform.
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