This year’s prestigious Fiserv Forum 2023 brought together industry experts, bankers, and risk management professionals to delve into pressing issues surrounding liquidity, credit, risk exposure, and regulatory relationships in the financial services sector. Strategic Risk Associates(SRA) had the privilege of participating in this year’s conference and were invited by Fiserv to speak on two different panels around ERM and FinTech Risk. The SRA team walked away from the event with new insights and key takeaways they learned during the conference. Below is a quick summary to offer some valuable insights for our banking customers aiming to optimize risk management and financial performance.
Liquidity emerged as a prominent topic of discussion at Fiserv Forum 2023. Bankers expressed a strong interest in more granular reporting and daily liquidity monitoring. This focus on liquidity management was underscored by the potential redistribution of weight from the credit category to liquidity or market categories in composite risk scores.
Despite credit being perceived as an area of high risk, the majority of portfolios showcased strong credit quality. Banks demonstrated an ability to expand their loan portfolios without compromising credit standards, leading to low nonperforming asset (NPA) ratios. This trend indicates a cautious approach to portfolio growth while maintaining credit quality, resulting in enhanced risk management practices.
Bankers expressed a strong desire to deepen their understanding of the alignment between risk management and financial performance. Recognizing the interconnectedness of these areas, participants sought insights and strategies to effectively manage risk while optimizing financial outcomes. Learn more here from a recent speaking session with Fiserv on “RISK & STRATEGY: TWO SIDES OF THE SAME COIN”
In the current environment, improving the assessment process and building stronger regulatory relationships were top priorities for banks. Participants emphasized the importance of managing assessments effectively and seeking tools and frameworks that could help identify gaps in their risk functions. SRA's Risk Maturity Frameworks were of particular interest, as they provided an economical and comprehensive solution to assess, improve, and manage risk functions.
Many bankers expressed reservations regarding FinTech relationships, citing a lack of internal knowledge and resources to effectively monitor these partnerships. These concerns were aligned with the recent interagency report emphasizing the need for better monitoring of FinTech relationships SRA’s session led by CEO Michael Glotz on FinTech Risk Management was well received and provided practical ideas that bankers can use to implement and improve their FinTech Relationships.
Fiserv Forum 2023 provided a platform for bankers and risk management professionals to exchange insights, challenges, and best practices. The conference highlighted the importance of liquidity management, credit quality, risk exposure analysis, and regulatory relationships in shaping the banking landscape. As banks strive to optimize risk functions and achieve financial performance, SRA remains committed to offering comprehensive solutions and guidance that enable banks to thrive in an evolving industry.