Pub. 12 2022 Issue 2

14 www.azbankers.org Activity in the financial services industry in 2021 encompassed numerous trends, challenges, and opportunities. While conversations of digital assets dominated much of the first half of the year, environmental, social, and governance (ESG) initiatives later emerged as a top concern— serving as a reminder that shareholder and stakeholder interests aren’t necessarily one in the same. The Great Resignation and the related challenges of an ever-evolving working environment, organizational fatigue, the proliferation of fintech, supply chain issues, and housing matters were also major topics. Though the Current Expected Credit Losses (CECL) took a back seat for many in 2021, 2022 will likely see a flurry of activity no later than the second quarter in terms of accelerating readiness as organizations come to terms with adopting the standard—at least for those for which the standard will ultimately apply. Below, we look to 2022 and beyond with potential next steps organizations can take to prepare for changes related to the following trends: • ESG • Fintech: Non-digital assets • Digital assets • Remote work environment and culture • Mortgage banking • Tax update • Current Expected Credit Losses (CECL) Environmental, Social, Governance (ESG) Relevant Issues: ESG Best Practices As ESG initiatives gain traction, organizations slowly move past recognizing and understanding the need for ESG strategies to implementing best practices. 2022 Financial Services Outlook: Trends, Challenges, and Opportunities By Tullus Miller, Partner, Financial Services Practice

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