Deregulation opened up a number of new businesses to banking and accelerated the consolidation of the financial services industry through mergers and acquisitions. This set the stage for the establishment of huge banking organizations of unprecedented size and complexity. Cost cutting continues to be a priority for banks including reduction of transaction costs, consolidation and rationalization.
Financial services institutions (FSIs) are also focusing on using technology to unlock differentiation, acquire new customers and increase revenue. Large FSIs will continue to develop new technologies and adapt to legislative and regulatory changes (such as Basel II and Check 21).