Financial service industry trends
Banks will become increasingly
dependant on External Contractors
to provide expertise and outsourcing
in order to achieve economies of
scale.
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Project and Program Management - Over 84%of major systems projects
fail due to untrained and under committed project management staff,
ineffective project governance and immature quality and risk management
processes.  The result is tremendous expense, excessive  delays,  scope creep,
risk management exposure and lost customers.

Mergers and Acquisitions - Banking firms of all sizes, from small
community-based savings associations to vast national bank holding
companies, continue to merge, seek marketing opportunities and operating
efficiencies. Completed mergers lead to consolidation of back-office support
services, the elimination of duplicated support staff positions and many
branch locations.

Industry Regulations - The Basel 2 Accord is one of the most important
developments in the regulation of the global financial services industry and
will have a massive impact on the way financial services firms carry out their
business. Basel 2 has an impact on almost all of the functions within your
organization and, like Y2K, will challenge most institutions' program
management and enterprise-wide implementation resource skills.

Emergence of True National Bank Chains - Mega-mergers have built
Bank of America, Wells Fargo, Bank One and other giant bank holding
companies into operators of the first truly nationwide or region-wide bank
chains. In the same way that giant retail chains have gained marketing clout,
buying power and operating efficiencies by building nationwide chains of
stores, banks are seeking competitive and operating advantages by merging
into immense banking systems spanning numerous states.

Adding Convenience - Banks are facing a long-term dilemma of shrinking
importance of its function as the center of financial intermediation. According
to the Federal Reserve, the average American household stores only about
16% of its total assets in banks (with 11.4% in bank accounts and 4.3% in
CDs), as opposed to 29% in 1989. In response, banks are taking services to
the customers, adding alternative locations such as branches in supermarkets,
and spreading their presence via tens of thousands of ATMs.