On the Money with Booz Allen's Sanzone

As banks and other financial services firms struggle to reduce costs, achieve greater efficiency, manage compliance requirements, strengthen cyber security and increase revenues, the going is getting tougher and much more complicated. That's why financial services veterans like Tom Sanzone, the Booz Allen Hamilton Executive Vice President who oversees his firm's commercial financial services consulting practice, tend to discuss the industry's challenges with great care and attention.Sanzone recently took time to reflect on important changes, challenges and opportunities within financial services. Consulting sat down recently with Sanzone.

Consulting: What are the most notable drivers of change affecting the industry?

Sanzone: The drivers having the greatest impact on financial services firms haven't changed since the economic downturn, but they have intensified. For example, the need to become more competitive—to attract and retain customers and deliver value to shareholders—has intensified as the economic recovery moves at a slow pace and margins continue to get squeezed. In response, decision makers are focusing on expense reduction and efficiency, but the benefits to be gained from their typical tools have been exhausted. Also, once sufficient perimeter security is proving to be a wholly inadequate deterrent to protect the FS industry. Compounding the tension of this environment is heightened regulatory scrutiny and a new, more aggressive approach to enforcement. Consulting: What are the biggest challenges financial services clients are facing today?