Hoosier Banker 49 their stress has risen to high or very high levels, compared to one year earlier. CFOs are taking on more responsibility, likely driving some of the anxiety. Yet in their efforts to share the responsibilities, nearly two-thirds of CFOs are finding it difficult (or even very difficult) to find qualified candidates to take on some tasks or to replace the CFO when he or she retires. The survey also found that community banks hoping to leverage the skills and experience of executives from larger banks may not be able to offer attractive enough packages, and some have geographic limitations that appear to reduce opportunity. Banks in smaller markets, in particular, are having difficulty attracting talent, especially in the areas of information technology, cybersecurity and compliance. 5. Risk mitigation. For risk management officers, cybersecurity is the No. 1 concern, with credit and compliance placing a distant second and third. While lending and compliance are receiving increased attention from the media and regulatory entities, cybersecurity is an immediate and broadbased threat. Like CFOs, nearly half of risk management officers view technology as the bank’s biggest area of risk. Perhaps surprisingly, employees – who other studies show are typically the top source for processing mistakes, fraud, breaches and other issues of concern – were flagged as a risk by only 18 percent of risk management officers. Regulators and customers follow as other risk concerns. Strategic Focus for 2018 This list is by no means comprehensive. About one-third of community bank CFOs are concerned about managing costs. This area is expected to be of major strategic focus in coming months. Filling open positions and getting access to capital are among other major concerns. CFOs also will be engaged in introducing new products and services in their banks’ efforts to drive revenue. Many banks are focusing on increasing capital and moving into new markets, driven by local pension issues or political gridlock to look beyond their state borders. This could mean the competitive landscape will shift, as new banks appear on the border. But 60 percent of the bankers reported the number of their branches will stay the same, while just under one-third will increase their total branches. Even as customers move toward non-branch, digital channels, it seems counterintuitive that only 13 percent of CFOs expect to decrease the number of branches. CFOs say that acquiring new customers Michael A. Renninger Principal (317) 695‐7939 mrenninger@renningerllc.com Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Road Davenport, IA, 52807 (563)326‐2064 Member: FINRA, SIPC. Renninger & Associates, LLC and Ausdal Financial Partners, Inc. are independently owned and operated. www.renningerllc.com "For an ObjecƟve Assessment of Your Challenges and Professional ExecuƟon of Your OpportuniƟes" Buy‐Side and Sell‐side Representa�on involving whole banks, branches, and non‐bank affiliates Stock Liquidity, Capital Development, and Strategic Planning Stock Valua�ons and Fairness Opinions CPA‐trained and CFO‐experienced Indiana professionals serving Indiana banks. Our services include: – and upselling existing customers – will be their top areas of strategic focus through 2018. To that end, in an effort to attract customers to their branches, many banks are modernizing branches into sleek, high-tech locations that offer amenities from coffee bars to yoga, along with their services, and that blend the digital within the brick-andmortar space.* In the end, it is about remaining competitive and profitable. HB
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