Pub. 11 2021-2022 Issue 5

To find out how bankers will confront challenges associated with pandemic-induced digital acceleration, cybersecurity, regulatory changes and more, CSI surveyed banking executives from across the nation about their strategies and priorities for 2022. The results of the annual survey are outlined in an executive report and highlight the opportunities — and risks — inherent in today’s banking environment. Here are the top five issues that bankers selected as most likely to affect the industry in 2022, along with strategic recommendations for your institution to consider. 1. Cybersecurity Threats Loom Large With over 85% of banking executives across asset sizes reporting an increase in digital usage at their institution, cybersecurity concerns form an ever-present backdrop. As a result, it should come as little surprise that 26% of respondents selected cybersecurity as the issue they believe will most affect the financial industry in 2022. Three converging circumstances make cybersecurity increasingly difficult for financial institutions: • As digital usage increases, more systems and users are vulnerable to cybersecurity threats. • As more cyberattacks occur, customers are becoming increasingly numb to the risks. • As institutions enhance their cybersecurity efforts, cybercriminals up the ante with harder-to-detect methodologies. Some steps, such as routine vulnerability scanning and penetration testing, are no-brainers to enhance your bank’s cybersecurity posture. Cybersecurity training is another strategy to prioritize, as banks benefit significantly from an informed customer base. Energize your customers with campaigns, videos and gamification to reinforce the importance of good cyber hygiene. 2. Recruiting and Retaining Bank Employees In a massive shift from previous years’ results, recruiting and retaining employees rose to second in bankers’ list of pressing issues, taking 21% of the vote. Organizations across industries are feeling the effects of the Great Resignation, and banking appears to be no exception. With the rise of remote work, prospective employees are now seeking opportunities outside of their geographic region. Larger companies in bigger cities can hire from anywhere and offer salaries far exceeding living costs in smaller communities. This trend causes a unique problem for financial institutions, as turnover leads to a loss of expertise and potentially creates risk from newer, untrained staff. Your bank should actively seek out new talent while supporting remote work when appropriate to combat these trends. As the talent pool becomes increasingly competitive, consider utilizing trusted ‘as-a-service’ product offerings and outsourced expertise. For instance, a managed services partner can help optimize your IT infrastructure if IT professionals are unavailable or limited. 3. Navigating the Regulatory Landscape Ranking third with 14% of the vote, regulatory change remains of constant significance to financial institutions, especially given a relatively new administration and a chance of new sanctions. While there is a host of regulatory issues to consider, several of which are Five Pressing Issues for Bankers in 2022 By Shane Ferrell, Vice President Product Strategy, CSI coloradobankers.org 20

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