July 2011

Editor’s Letter: Facing a Profoundly Changed Market

Steve Klinkerman

As U.S. banking executives begin planning for next year, it is clear that they must prepare for a profoundly changed market — not a return to pre-recession conditions.

As shown in our cover story, “U.S. Banking, a Challenging Road Ahead,” the industry is heading into an era of restructuring and consolidation, yet with new growth possibilities.

Transformative cost reduction will be a top priority, as detailed in “Rebuilding Retail Banking.” Another priority is winning market share, as discussed in “Threading the Needle for Consumer Loan Growth.”

Middle market companies remain generally cautious, as detailed in “Prioritizing for Growth in Commercial Banking,” yet there is rising demand for advisory and treasury management services, as well as for loans in select industries and regions.

Meanwhile, there is upside in serving the larger needs of retiring Baby Boomer households, as discussed in “Wealth Management Strategies for Boomer Retirement.”

Overall, it is time for a deep re-examination of the strategies and skills that will be needed for a permanently changed market.