Tomorrow’s Financial Leaders Weigh in on Industry Issues

This was an interesting set of observations included in a newsletter issued by Taylor & Co., an executive search firm. Rod Taylor recently conducted a survey of future leaders in finance, and these are his findings on the top issues faced by the industry.

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Throughout the world of financial services, industry and government leaders are making extraordinary decisions in the wake of unprecedented chaos. Inevitably, the next generation of leaders will inherit a new industry paradigm resulting from those decisions.

Too few younger leaders are ready to succeed the multitudes of retiring baby boomers so their career choices will determine which institutions win or lose as the future unfolds. Therefore, to help clients better understand how to attract and retain them, Taylor & Company surveyed over 100 young executives and asked “What are the issues, questions, or challenges facing the financial services industry today that concern you most?”

Here are 10 answers that represent the consensus of survey responses:

Trust
Shareholders, employees, customers and regulators no longer trust the system.
How do we rebuild, regain, and restore faith, trust, and confidence in our institutions?

Talent
There are too few leaders ready to replace the many who soon will retire.
Who will win in the “War for Talent,” and how?

Capital
Real capital has disserted the industry.
What must we do to attract investors with realistic expectations?

Obsolescence
Much of the industry’s existing infrastructure is obsolete.
How can it be transcended without overwhelming losses?

Education
As a new industry paradigm forms, “old school” credit skills are in short supply and badly needed.
The “skill vacuum” requires empirical knowledge beyond academics. Who will teach and train …and how?

Ethics
A get rich quick mentality made many forget the virtues and values of an honorable career.
Can the professional traditions of integrity and loyalty as guiding principles once again be embraced in both policy and practice?

Regulations
A new regulatory system must be practical, integral, efficient, cooperative, and focused on industry reality well beyond the systemic abuses of the recent past.
The rules can change, but can the “rulers” make them work?

Globalization
Global economic interdependence will accelerate systemic integration universally.
How will we engage and/or compete with the much larger monolithic foreign institutions that are positioned to acquire and expand everywhere, including here?

Consolidation
As universal institutions shrink in number, loyalties are becoming even more transient.
What will be the profitable service delivery model that wins and retains loyal, local customer relationships in the future?

Demographics
New perspectives on segmentation are emerging with a dynamic demographic shift in America’s population.
How will market strategists reach multiple segments with superior efficacy and efficiency?

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