Deflation in financial institutions is not a new phenomenon, but it has shown a trend of full-fledged deflation in the last six months.
The deflation of the whole industry is not just the phenomenon of a few financial institutions, but the entire industry is experiencing deflation. The current general perception of the economic environment is not good, whether it is expansion first and adjustment and then expansion and now there are concerns about the current economic situation because it is uncertain when expansion will be achieved. Under this consensus, it is inevitable that business delivery will not be as expected, because no one is sure where the future holds, so financial institutions generally lack the momentum to move forward.
At the same time, the rapid expansion of the past has entered the liquidation stage in the past two years, and various financial institutions have gone bankrupt and withdrawn one after another, and the pressure on assets is increasing. Prudence has become the main theme of financial institutions, further exacerbating the lack of motivation. In this case, the lack of direction and growth, combined with the liquidation of historical non-performing assets, has put the entire industry into a state of deflation.
Total deflation, that is, as the scale of the business is reduced, the number of employees is also going through a phase of layoffs and salary cuts. This all-staff deflation includes a reduction in the number of employees and a reduction in labor costs. There are usually three phases: the first is to keep the number of employees the same but reduce the overall level of benefits, the second is to lay off employees and adjust the benefits package to achieve stability, and the last is to reduce the number of employees and benefits across the board. You can check the company you are currently in to see what stage it is in.
Finally, there is the deflation of individuals, and along with the deflation of entire industries and institutions, individual financial practitioners are also experiencing full-scale deflation. In daily work, they tend to be conservative, risk-averse, and overly conservative. While business is decreasing, communication and attention about health and family are increasing. The former ideals and ambitions collide with the current reality, and the meager remuneration in the iron rice bowl seems to have become the only realistic choice.
The deflationary situation in the financial industry is severe, and practitioners need to be more flexible to respond to real challenges and find new growth drivers.
