Four Views On What's Ahead In Financial Services

Four financial services industry analysts see a future with fewer providers and with the survivors sharing certain common tactics and strategies. In the near-term, meanwhile, it's imperative in any discussion of the financial services marketplace to consider the effects the recessions continues to have.

The Price Of Regulator 'Irrationality'

Ken Proctor of Cornerstone Advisors cited what he called "signs irrationality on the parts of regulators on the last 12 months, especially in writing off credits. "On the whole they do seem to be turning up the heat on the credit side. I don't get a great deal of comfort out of Federal Reserve exams; I don't think they have a clue what's going on in banks."

Fraud Comes Storming Back

Fraud is likely to continue growing, noted several analysts. "I think we have been so eager to get our customers to use our systems that we have been downplaying the security risks," said Jeanne Capachin of IDC Financial Insights. "It's time now to really provide some education and makes tools available, and if they aren't taking advantage of the tools they near to bear some of the responsibility.

The Payoff (Or Cost) From Payments

Aite Group's Gwen Bezard noted that two camps have formed around how to view PayPal: as a threat or as a potential partner. "Both have an upside and downside, but at the end of day I think there is value for FIs in having a payment branch."