by Kristin Moyer | September 23, 2008 | 1 Comment
David Furlonger here, adding to the Banking & Investment Services blog for today.
Give it $700 billion and the Treasury will do its best.
There is no guarantee this close to the election that the proposals will actually go forward or in the vague form outlined. The critical “abyss” the market is facing is not so much the implication for banks per se but the implications for business. A September article in Auz (not a country as heavily hit as say the US or UK) suggests corporate borrowing costs have risen between 2.2 and 5.4pct over the first six months of the year. This is the real issue – the impact on T&Cs for corporate (and presumably retail) lending.
What does this mean for IT?
- Iincreased demands on business process management and workflow surrounding the needs for more and more complex documentation
- More detailed bi-lateral information interchange between the customer touch point and the financial services decision support systems
- Better and more holistic risk management capabilities.
Banking and investment services firms need to take control of the situation here regardless of any potential “bail out.” If you don’t have an IT strategy to deal with this situation, start scenario planning as soon as possible – NOW.
Category: Uncategorized Tags: banking and investment services, financial crisis, scenario planning