The business backdrop for 2023 , coined ‘ the Triple Squeeze ,’ is one of high inflation , rising interest rates , and concerns about a global recession . This is in contrast with the ‘ Great Recession ’ of 2008 , which was marked by high unemployment and low-interest rates – and financial services ( FS ) institutions will need to employ a different set of solutions than they did in 2008 . In addition , financial institutions are facing rising customer expectations and operating in heavily regulated markets with continued scrutiny on governance , risk and compliance practices .

“ 45 % of financial services executives believe a recession is coming in the next 18 months . . . . If a recession occurs , executives ’ top areas of concern are credit , loan or premium losses ; reductions in new revenue ; and the potential need to reduce costs . . . . In terms of investments , the first areas that industry executives would cut would be physical infrastructure and mergers and acquisitions . Investments in customer experience and automation would be cut last , underscoring their critical importance for the industry . . . . Finally , executives signal that they expect to focus on building a sales pipeline that is optimised for growth and invest in new technology capabilities in 2H 2023 .”

– Gartner Business Priority Tracker 3Q22

Gartner ’ s recent whitepaper , ‘ To Cut or Not to Cut ? FS Leaders Are Divided On the Economic Outlook and How Best to Respond ’, discusses how firms ’ commitment to the customer experience is set to endure through difficult times as leaders shift their focus from physical infrastructure to digital customer experiences . Investments in automation and customer experience improvements are critical precursors to continued reductions in physical infrastructure investment .

Business and IT leaders need to maximise resiliency and minimise risk

Risk , operations and IT executives are challenged by the volume , complexity and velocity of risks , which are managed inefficiently across business silos using a variety of methodologies and measurements . In the face of these challenges , executives are making modernising their legacy infrastructure a top priority . As seen in a recent Wall Street Journal headline on crypto market fraud , SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears , Market Selloff , Paul Munter , acting chief accountant at the SEC quotes : “ the current economic environment is subject to significant uncertainties and , historically , that oftentimes leads to heightened fraud risk .” �

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