By: Brian Smith, Partner and Managing Director, Financial Services
The Administration has proposed a set of new rules to increase regulation of the banking industry. While we don't know what the final outcome will look like, we do know that changes will be focused on lending, bank structure, and the separation of investment banking from retail banking. None of these changes will minimize the need to reduce expenses.
In the spirit of proposed changes, banks are already taking a hard look at their businesses and looking to redefine what is core as a recent article from American Banker explains. The key for companies will be to find the right outsourcing partner to help them address whatever regulations do emerge. We believe that banks of all sizes will look to both domestic and offshore outsourcing solutions such as Knowledge Processing Outsourcing (KPO) to help them deal with new reporting requirements.
Essentially banks will further lean on sourcing solutions to manage these changes and keep their expenses in line.