Coping with regulatory change

Not since the 1980s during the period of “de-regulation” has the financial services industry seen a period of such intense regulatory change.

Change by itself is not the primary issue that banks and other financial service organizations grapple with. The issue is how to capture a market advantage while so many parts of the decision picture are unclear. 

Regulations are likely to impact many product categories, fee structures and customer segments.Since regulations are changing in a variety of contexts, it is important to prioritize your research. 

Consumer credit
Many different consumer credit products will need to be restructured.  Our team is currently working with clients to test alternative product configurations. Now is a good time to assess how well these regulatory changes are affecting your existing portfolio so that customer needs can be better met.

Deposit products
Revenue attributable to overdrafts and non-sufficient funds will likely see dramatic decline in the coming months. Customers will support such changes but it represents a loss of revenue to your organization. We recommend testing alternatives for replacing such lost revenue. 

Fee structure
Revenue streams from re-regulated products will also be seriously affected.  We work with our clients to model how current and potential revenue will be affected by upcoming changes.

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