U.S. bank margins contracted at a quicker pace in the first quarter for most institutions as funding costs rose at a quicker place than loan yields. Funding costs have continued to grind higher amid persistently high rates, changes in customer behavior and pressures from regulators. Banks will likely face a higher-for-longer rate environment, with expectations for rate cuts in 2024 and possibly not occurring in 2025 and that should lead to higher credit costs as well, creating a modest headwind to earnings.

Meanwhile, the fintech sector was flush with venture capital and unabated enthusiasm for much of 2020 into mid-2022. That stands in stark contrast to the reality check that has settled in over the past 18 months with higher rates sapping new funding, while bank-fintech partnerships have faced far greater regulatory scrutiny. However, long-term secular tailwinds for the fintech sector remain strong. The future of fintech is faster, open and embedded. Consumers continue to seek digital ways to send, spend, store, borrow and invest funds, and there is an increasing need for banks to partner with banktech firms to offer better products for their commercial customers across payments, treasury and finance to improve efficiency, fee income and improve overall profitability.

During this webinar, the S&P Global Market Intelligence Research team will present their proprietary projections for commercial bank performance and fintech, assessing the strength of fintechs’ market position and their ability to drive meaningful outcomes for consumers, enterprises and financial institutions.

We will examine:

• Deposit and liquidity trends for US banks and forecasts for future performance
• Outlook for loan growth and credit quality
• Profitability and earnings expansion opportunities over the next 6-12 months.
• The different strategies, technologies and vendors that can accelerate modern technology adoption roadmaps for banks.
• VC funding trends in the U.S. for various categories of fintechs.
• Payment trends: Streamlining B2B payments to create operational efficiencies and the evolving market opportunity for financial institutions and fintechs integrating with instant payment networks.