Impact of Re-regulation, De globalization and Disruptive Technology on the Financial Services Industry
In the 30 years prior to the Financial crisis, our Industry flourished driven by technology, deregulation and globalization. In recent years, the Industry is being re-sized and reshaped by re-regulation, de-globalization and disruptive technologies. GMG is hosting an event on Thursday, 10/22 with a highly distinguished panel to discuss the current state of the industry:
- Vikram Pandit (Moderator) – Chairman of TGG and former CEO of Citigroup
- Mike Bodson – CEO of DTCC
- Arthur Levitt – Former Chairman of the SEC
- Tom Glocer – Former CEO of Thomson Reuters
- Brad Hintz – Research Analyst, CFO and Professor at NYU
Key Topics of Discussion
Re-regulation – Introduction of Basel II, Dodd Frank, Volcker etc. that has caused firms to move away from high risk businesses / products and find innovative ways to retain profitability. Fines of unprecedented size have been levied and the reputation and behavior of Industry participants has been under scrutiny by legislators, regulators, the press and the public.
De-globalization – Since the crisis, there has been a sharp decline in global trade across borders especially in financial lending and investments. Financial sanctions are replacing armed conflict as a policy weapon (Ukraine, Iran, Venezuela) presenting compliance challenges and restricting capital flows. Investors have pulled out of financial markets across the developing world and some say we are entering into a period of financial de-globalization.
Disruptive Technologies – Mobile computing, digital currencies, big data, advanced analytics and social media are bringing challenges and opportunities. Most large firms are designed to work on legacy sustaining technologies but with firms looking to cut costs and glean efficiencies from an operational and technology perspective, disruptive technologies may help or hinder by allowing new intermediaries to enter the market.