Bull Market for Banking!

Just last week at the NCBS 2010 Retail Banking Conference, Tom Brown, of Bankstocks.com and Second Curve Capital, kicked things off with a presentation titled “The State of Banking as 2011 Approaches.” Tom made a compelling case that the economy and banking sector have hit bottom. As provision charges have declined, most banks began returning to profitability in early 2010 and Tom expects the trend to continue. Although he is seeing improvement, Tom did caution us that earnings would not return to pre-crisis levels. He said we should expect a “new normal” for bank earnings due to a combination of increased regulation and the lingering effect of the economic crisis.

Tom further suggested that we should expect a great deal of bank consolidations over the next several years. The key factor in organizations surviving consolidation is through differentiation from your competitors. We at Prime Performance agree that now is the time to invest in your organization to be in the best position for the rebound. Elevating client experience has proven time and again to be a key differentiator between banks. Consider now whether client experience is part of your bank’s culture, or if it is merely an afterthought—the contest is just around the corner.

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