Bank Execs Plan to Revise Long-Term Strategies Post Dodd-Frank, Survey Shows

Two-thirds anticipate an increased focus on growth.

A majority of U.S. financial services industry executives (61 percent) surveyed by Accenture believe that new government regulatory reforms will prompt their companies to revise their long-term business strategies.

Two-thirds (66 percent) believe the reforms will make it necessary for their companies to reassess growth strategies, revenue sources or target markets. A nearly equal number (65 percent) believe the regulations will require their companies to increase their focus on growth.

Asked what they considered to be the most important changes their companies will pursue, executives cited enhancing risk management and reducing costs, followed by modifying pricing, increasing focus on core competencies, launching new products and service lines, and entering new markets and customer segments.

The survey, conducted in late June, polled 102 executives from a range of large, medium and small financial services institutions across the United States.

“These industry reforms will have substantial implications for how financial institutions operate their businesses, both near- and long- term,” said Chris Thompson, senior executive and head of Accenture’s financial services industry risk and regulatory management practice. “What is particularly interesting is the strong emphasis among executives on growth and the substantial number of firms anticipating improved competitive positioning.”

According to the survey, more than one-quarter of executives (27 percent) expect the financial reforms to improve their company’s competitive positioning. Two out of five (40 percent) expect their company’s competitive position to weaken and one-third (33 percent) believe their position will remain the same after the reforms.

Accenture commissioned an online survey of executives at a range of financial institutions operating in the U.S., including banks, capital markets firms and insurers. The survey was conducted between June 18 and June 22, 2010 and asked executives about their views of the implications of the proposed regulatory reforms for their companies. Thirty-seven percent of respondents were from financial institutions with more than 50,000 employees; 36 percent were from firms with 10,001-50,000 employees; 24 percent were from firms with 5,001-10,000 employees; and 15 percent were from firms with 5,000 employees or less.