Looking to the Future: The Risks and Rewards of New Opportunities
In recent years, the post-crisis economic recovery has shown signs of increasing growth and innovation. However, financial institutions must carefully manage the risks and rewards of these new opportunities. The Twelfth Annual Risk Conference on April 10-11, 2019, explored diverse perspectives on the financial services sector as experts gauge the current state of the industry and attempt to discern a sustainable path forward. Topics ranged from traditional issues like the credit growth cycle and bank regulation to the emerging applications of technologies like blockchain. Attendees participated in this day-and-a-half overview of the major trends shaping financial services and the opportunities that lie ahead. The conference was co-organized by the John L. Keeley Jr. Center for Financial Services at DePaul University and the Federal Reserve Bank of Chicago.
While Virtual Currencies have experienced extreme volatility, the supporting Distributed Ledger Technology including Blockchain have increased in use and importance. This technology has the potential to create cost savings and improved efficiencies for trading and transfer of a variety of assets. This first panel will provide diverse perspectives on this technology, and is comprised of panelists from the banking industry, a regulatory agency, and a technology solutions provider. Whether undertaking DLT/Blockchain projects themselves or transacting with clients, banks will need to understand how this technology has, and will, impact financial services.
Technological innovation is transforming the delivery of traditional bank lending. In the past, lenders largely relied on personal interaction and trust in the lending relationship. Now, diverse data sources and advanced data analytics have provided an alternative approach to loan underwriting. Online lending is a fast-growing segment that challenges the traditional model of "local banking." In this panel, we will discuss the role of banks, fintech companies, and regulators in this evolving area of lending.
The U.S. economy is enjoying one of the longest expansionary runs in its history and banks are in a strong financial position. However, there are global headwinds looming on the economic and geo-political horizon. Global economic growth appears to be slowing and the path of interest rates remains uncertain. As the U.S. consumer has deleveraged since the crisis, corporations have added leverage. Consumer and commercial lending by non-regulated lenders continues to grow. The panel will discuss the opportunities for growth, emerging concerns in credit portfolios, impact of regulation and the competitive realities.
The interconnectedness between the evolving regulatory/supervisory landscape and financial stability has been an area of focus since the great recession. This panel will focus on recent developments and a forward looking view on regulatory policy matters; the U.S. and global economy, including the influence on monetary policy; and perspectives regarding financial stability. The panel will bring together important elements linking to the conference theme of Risks and Rewards of New Opportunities.
