The financial services sector is a delicate market. Many factors affect and alter interest rates, regulations, and compliances. On the one hand, there is a lot of talk going around online that the labor market has never been stronger. On the other hand, some economists fear a looming recession in the United States. Although there is some uncertainty, both the economy and the labor market are HOT, especially in the financial services sector. Here are three trends to keep an eye on as we approach 4th Quarter and even 2020.
Online and mobile banking
I am willing to bet most of you reading this use online or mobile banking in one form or another. Whether that’s keeping an eye on your checking account, applying for a home loan, or shopping for a new credit card. With today’s digital era, (often called the 4th Industrial Revolution) drastically changing the financial sector, banks and other financial institutions have to change how they do business and interact with customers.
Fewer and fewer consumers actually walk into a physical bank and speak with another human. Nowadays, Millennials like myself rarely step foot into a bank. For example, I just bought my first house without ever talking with someone from a bank face-to-face. And as Millennials project to account for 75 percent of the U.S. workforce by 2025, this transformation of services for the technology-savvy generation won’t be going anywhere. As a result, financial institutions will continue to have to be flexible to accommodate the ever-changing demands of consumers.
Fed keeps cutting interest rates
As you’ve probably heard, the Federal Open Market Committee (FOMC) just cut interest rates to 2.25 percent at the end of July. At the end of December 2018, the fed funds rate was 2.5 percent. Since the Great Recession in 2008, the Fed has been increasing rates. However, over the second part of 2019, the Fed has cut interest rates multiple times to help stimulate the economy and ensure the labor market remains strong.
But what does this really mean? Well, it means consumers like you and I can get loans and credit cards with more favorable interest rates. In other words, its cheaper and easier to borrow money or secure a loan. And when we spend more money on things like cars, houses, and other items, we continue to stimulate the economy. It will be interesting to see if the U.S. will see another cut in rates before the end of this year.
An emphasis on security
Financial institutions and banks will have to continue beefing up their security to protect their business’ and their consumers’ data. But why is security always at the forefront of financial organizations? Well, it’s because they have a TON of important, confidential data.
There’s a cybersecurity attack every 39 seconds. Any by 2020, the average data breach will exceed $150 million. And this number will only continue to grow as more and more business begin building their online infrastructure. Look at the recent data breach by Equifax affected 147 million Americans and with a settlement costing $425 million. That’s a lot of confidential information stolen. To combat this, organizations must build up their information technology teams to implement safeguards and improve monitoring of their data.
Partner with our financial services recruiting team
In today’s tight labor market, it can be challenging to build up your team to remain flexible in the financial sector. If your organization needs a hand, reach out to JSG’s financial recruiting team today. We understand the market and will help you locate and attract the talent you need to remain competitive in the market. Contact us today, and let’s get to work!