Banks will have to more deeply mine revenues from existing customers to match past performance
During the last 10 years, U.S. banks rode a tidal wave of good fortune. But the tide appears to be turning. Interest rates are rising, regulations are tightening and consolidation opportunities are diminishing. These and other looming changes have many bank executives wondering where the next 10 years of profitable growth will come from. In this article, we examine the trends that produced such a hospitable environment for banks and how these trends are likely to shift in the coming years. We then explain what banks must do to match or exceed their stellar performance of the last decade: more deeply mine revenues from their existing customers, a strategy that most banks have struggled to master for years. With the wind no longer at their backs, banks that cannot do so will find that average industry performance no longer produces market-beating results.