Grab The Brass Ring

Welcome to the Winter 2022 issue of the Curinos Review.

“Grab The Brass Ring” is filled with articles about the opportunities that await financial-services providers in these tumultuous times. The expansion of net interest margins that accompanies rising rates has contributed to industrywide profitability. Still, there is enormous uncertainty about what is ahead in 2023. That means strategic planning and agility will be critical to ensure financial institutions maintain momentum — no matter what’s coming down the pike.

We start by taking the pulse of the critical deposit landscape. It is quite clear that the surge deposits generated at the height of the COVID-19 pandemic are now leaving the system. But there is widespread deposit divergence among institutions, and it appears that some are already coming under funding pressure. Attention to funding quality will be paramount in 2023, no matter if the economic landing is soft or hard. We also outline a range of deposit strategies to
attract the valuable episodic shopper, some of which are already being deployed in the U.K.

In addition, we also provide a “cheat sheet” for the C-suite that encapsulates the current state of play in the industry, along with what bears watching in 2023.

Despite the opportunities, there’s no question that there are significant challenges. We assess the latest upheaval among fintechs and examine what it takes to excel in this market. And we outline the potential risks to capital and funding levels that are tied to embedded losses in securities portfolios. Often overlooked, the issue is now drawing attention from bank treasurers. Could regulators and rating agencies be next?

This issue also digs into the changing economics of serving mass-market consumers and highlights some investing research that we recently conducted in the U.K. The upshot: consumers are frustrated by complicated digital investment applications and a lack of functionality after they log into their accounts.

We hope you take the time during this busy time of year to delve into the year’s final issue of the Curinos Review. And even more importantly, we wish you peace, health and happiness for 2023.