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After customers attempted to withdraw $42 billion dollars in one day, Silicon Valley Bank — previously the 15th largest bank by assets — collapsed.
This collapse ultimately boils down to a lack of risk management and governance practices, and will not only directly affect the economy, but also create new challenges for banks and those employees who were displaced as a result of the situation.
To get ahead of these challenges, there are ways financial institutions and hiring managers can stay informed and be proactive in their efforts to keep business moving.
In these uncertain situations, there are many ripple effects that may create further implications for financial institutions, so it’s important that banks are ready for what’s to come. Here are a few things those in the banking industry should be prepared for:
Aston Carter Governance, Risk and Compliance experts expect that in the short-term, customers who previously belonged to smaller regional banks will be opening new accounts at new institutions, perhaps spreading their funds across multiple banks. This could put a strain on account opening, onboarding, financial crimes, operations and risk rating. Customers could also be contacting banks, putting pressure on online systems, customer service and branch operations as customer complaints must be recorded and actioned by regulation.
In the upcoming weeks and months, bank systems and procedures will need increased headcount to deal with the additional volumes, demand and influx of new customers. Looking ahead to the long-term implications, banks will need to upgrade and restructure many of their internal functions, including risk management to accommodate their new customer base.
While it can be overwhelming to consider how this will evolve over the coming days, weeks, months and quarters ahead, there are ways organizations can be proactive and ease some of the burden brought on by this volatility — and Aston Carter is here to help.
The current volatility in the banking industry is creating challenges for both hiring managers and displaced employees. When it comes to managing this quickly changing landscape, teaming up with a workforce solutions partner can help to increase your overall capacity, support compliance efforts and ultimately avoid business disruptions.
Aston Carter understands the complexities of this crisis and is positioned to help place qualified talent quickly and provide additional support. We offer scalable solutions designed to improve your operational capacity and workforce quality. Our teams comprise subject matter experts, project managers and analysts who help execute deadline-sensitive projects of all sizes.
While there’s no telling what further implications the current banking crisis will have, Aston Carter is ready and able to help your organization get ahead of, manage and move through the uncertainty so you can keep business on track.
Contact us for more information on how Aston Carter can help you navigate the current liquidity crisis.