Letter from the Editor

Having made great strides in stabilizing their recession-scarred portfolios, banks are now turning their sights to 2011, where the big question is revenue growth. With loan volumes down 40% to 70% from the peaks of a few years ago, is there any relief in sight?

To explore that question, this issue of the Novantas Review takes a look at loan growth strategy in a post-recession environment. As detailed in our cover story, “Gaining the Edge in a Tight Market,” it is shaping up to be a shallow economic recovery, setting the stage for an epic market share battle among growth-hungry banks.

The situation marks a strategic turning point in an industry that had been fixated on high-volume product origination. The new priority is relationship expansion — doing more business with established customers — with major implications for bank performance.

As outlined in “A Cautious Outlook for Household Credit Demand,” many consumers are still dealing with the aftermath of the recession and wary of new mortgage borrowing. In turn, there’s a need for enhanced sales responsiveness in the branch.

Meanwhile in middle market commercial banking, clients increasingly are looking for specialized banking expertise. As shown in “Regional C&I Growth: Focusing to Win,” there are further opportunities to meet this need through so-called “industry verticals.”

Such customer-centric strategies will be essential in a tight market.

— Steve Klinkerman
Editor in Chief

Contactos Media

Edward Van Eckert
(212) 419-2525
evaneckert@novantas.com