“Despite a high regulatory burden, US banks still must invest in innovation. And indeed, regulation can often spur innovation.
That sentiment was expressed by D+H CEO Gerrard Schmid during the keynote of the company's Connections 2014 conference this week in Orlando, Fla. Schmid mentioned the regulatory environment banks face, noting that in July Dodd-Frank celebrated its fourth anniversary. "I'm not sure how many people showed up for that birthday party," he joked.
However, he did also say that regulation can be the mother of invention: "Despite the burden, good things can come from regulation."
Schmid mentioned the auto industry as an example. Tasked by regulators with curbing emissions, the industry started manufacturing fuel-efficient and hybrid vehicles. In the same vein, the banking industry can use regulatory requirements to become more efficient and agile and to create innovative products.”
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