Fear of Fintechs on page 8 of the report is a special section on the threat from FinTech. Bankers surveyed report the highest threat is in payments and money transfer platforms followed by specialty lenders; online investment/advisory platforms; and then crowdfunding direct-to-investor platforms. Anything in this report surprise you?
I am reminded of a very good article that was posted two years ago on things that people want to act quickly upon and things they want to assess more deeply and slowly. It states "fast" money is about simplicity, while "slow" money is about security. You can find it at https://www.bankingexchange.com/customers/item/7487-recognizing-dealing-with-money-emotions Does this help us think about where community banks can deliver value to our clients and where our past/current offerings will be more efficiently digitized to the satisfaction of clients?
------------------------------
Neil Stanley
------------------------------
-------------------------------------------
Original Message:
Sent: 03-09-2020 23:15
From: Neil Stanley
Subject: Viewing the Latest Bank Executive Business Outlook Survey in Light of the Panic of 2020
Noticed that the 4th quarter survey results of 543 banks has recently been made available to us here. This report displays bank leaders' expectations for access to capital, deposit competition, loan demand, funding costs, and general economic conditions over the next 12 months compared to past results. This report could be very helpful to all of us in identifying and assessing our strategic opportunities. Check it out.
So interesting to note that just a few months ago when this survey data was assembled before the current financial panic that 88% of respondents expected loan demand to improve or stay the same over the next 12 months. Simultaneously 56% of respondents expected deposit competition over the next 12 months to get worse. It will be interesting to see as the markets have dramatically driven interest rates to historic lows what will happen to these competitive forces. Could the latest events lead to economic recession or conversely to inflation as demand exists for an increasingly limited supply of goods and services? Seems to me that the Great Recession was nothing like the Panic of 2020.
Will these survey results be accurate in reflecting the coming 12 months or is this an entirely new ballgame? What do you think?
------------------------------
Neil Stanley
------------------------------