Sundry Edition
A Biweekly Newsletter by Salt of the Earth Consulting, LLC
Vol. 22 | August 30, 2023
At Salt of the Earth Consulting, we created Sundry Edition as a way to further our mission to be a trusted and beneficial partner within our community. Each newsletter includes a curated list of articles that fit a theme within the financial services industry. And, because at SOTE we each share a passion for music, we always include a few song recommendations!
Eye of the Storm
The future of commercial real estate is a hot topic in the financial services industry right now (we shared some of our thoughts in our last Sundry Edition, read more here). This week we are looking at a few ways other environments are impacting the financial services industry, with a focus on the 10 largest banks in the US.
Big banks like JPMorgan, Citigroup, and Goldman Sachs are starting to mandate that employees who have been working from home return to the office, but a recent Deloitte survey found that financial services executives are not prepared to do so. Two-thirds of the executives surveyed have no interest in returning to a corporate office, however some did acknowledge an in-person work environment can lead to more socializing and career advancement opportunities. The general consensus of the survey is that many financial services executives are “so keen on remote work that they’d quit if they were forced to return to the office five days a week.” This dichotomy could lead to real challenges for the banking sector if young, ambitious, and talented individuals are lured into positions with more work environment flexibility in competing industries such as asset management and financial technology.
Aside from home offices, another change in venue for large banks is mobile bank branches. PNC Bank has shown a commitment to their community by utilizing mobile branches to reach unbanked and underbanked individuals. PNC Bank has also used these mobile units to allow for in-person banking services at places such as festivals, colleges, and areas impacted by natural disasters – with the latter being especially relevant now that we are entering hurricane season and banks will be challenged with closing branches due to severe weather.
The read-outs from the Jackson Hole meeting of Central Bankers last week reflect a number of concerns about the global economy that can and should concern bankers. Why have rapidly rising interest rates not resulted in significant credit deterioration in commercial and retail banking? What do the proposed changes to capital rules mean for credit availability going forward? What is the relationship between unemployment and inflation? All bankers should be taking a hard look at their risk management scenario analysis and be open to expanding their considerations of “what if?”
Salt of the Earth is a boutique consulting group that offers bespoke solutions and quality advice to people, companies and associations. While we strive to keep our finger on the pulse of all aspects of the financial services industry, you can read about the specific services we offer here.
What We’re Reading…
What We’re Listening To…
You Know It
Colony House
Stormy Weather
Kings of Leon
The Night We Met
Lord Huron
Salt of the Earth Consulting 