“Banks are still in recovery mode after the financial crisis and coming to grips with the new regulatory environment in which they now operate, which is impacting revenue and driving up compliance costs,” said Brian Stephens, national leader of KPMG LLP’s Banking and Capital Markets practice. “‘The new normal’ for the industry seems to be slow and steady growth as banking leaders streamline costs and evaluate strategies to drive future revenue.”
According to the KPMG survey, banks are anticipating modest headcount gains in the year ahead, with 39 percent adding to the payrolls and 32 percent decreasing jobs. Stephens feels that hiring will more firmly take hold “when business conditions improve and loan demand picks up.” In the past year, 44 percent of the banking executives said they reduced headcount and 31 percent said they added jobs. “Headcount increases and reductions will be sporadic and largely depend on the mix of businesses within each bank,” said Stephens.
A year from now, 6 percent of respondents expect revenue to be significantly higher with the majority (69 percent) eyeing moderate revenue growth.
For an insight into adapting IT systems for regulatory change, visit The Forum for Regulatory Change