SEPTEMBER 2023 INDUSTRY NEWS AND TRENDS
U.S. banks have faced wave after wave of adversity recently, including a recent wave of high-profile bank failures and a sudden spike in interest rates that have left the banking industry facing customer dissatisfaction, increased financial exposure, reduced profits, and a tarnished reputation.
This in-depth article from The Conversation examines the overall health of the U.S. banking industry and examines what this means to the people and businesses who entrust these institutions with their banking needs.
According to Reuters, banks are shoring up cash and imposing stricter lending criteria in response to a slowing economy and the prospect of tighter regulations around liquidity.
Federal Reserve data shows cash assets for U.S. banks increased by 5.4% between December 2022 and August 2023, while S&P is forecasting loan growth of just 2% this year compared to 9% last year.
Find out how this will impact banking services in the months to come.
An analysis of company annual reports for 2023 indicates that problematic accounting and poor internal control over financial reporting is straining the capacity of audit committees. According to the report, the number of businesses that needed to correct financial statements and upgrade internal controls increased by 150%.
A survey of 500 accounting and finance leaders revealed that nearly seven in 10 don’t believe they have the technology they need to address the growing demands of their counterparts in other departments, including sales, marketing, and operations. These demands include the need to support go-to-market models and product pricing based on accurate, timely data.