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Chart 84: Now that we've defined “big data”, how far do you think financial institutions are at
embracing the use of big data today?
60%
50%
40%
30%
20%
10%
0%
Fully committed to Fully committed to Fully committed to © Somewhat Not at all
using big datato using bigdatato using big data committed committed
generate improve cost or across the
investment alpha / process efficiency, organization
revenue growth risk management,
regulatory
compliance
Source: BofA Merrill Lynch Global Research
Chart 85: After this conversation, have you changed your mind on how financial institutions are
adopting big data in their businesses?
60% 55%
50%
40%
30% 23% 23%
20%
10%
0%
Financial institutions are more Financial institutions are less No change
committed to allocating committed to allocating
resources to bigdata than! — resources to big data than |
thought thought
Source: BofA Merrill Lynch Global Research
The Future of Financials M&A and Regulation
We hosted a panel to discuss the state and outlook of M&A and regulation. Given the
results of the US election and the potential for easing of regulations, the panel
discussed a timely topic on the mind of investors. Our panelists included Rodgin Cohen,
Senior Chairman of Sullivan & Cromwell; Richard Kim, partner at Wachtell, Lipton,
Rosen & Katz, and Ed Hill, Senior Vice President, Government Affairs, Bank of
America Corporation.
= Regulation is about tone: Our panelists agreed that the scope and strength of
regulation comes from the tone and attitude of regulators rather than from
legislation. They noted that an attempt to repeal legislation such as Dodd-Frank
would be misplaced as most direction derives from the tops of regulatory bodies.
They also felt Senator Hensarling’s Financial Choice Act would not be a better
alternative to Dodd-Frank given the 10% leverage ratio is not a Federal Reserve
definition of leverage. Utilizing a Fed definition would likely lead to leverage north
of 10%. The inclusion of CAMEL ratings with the leverage ratio would also allow
regulatory sway over institutions.
58 2016 Future of Financials Conference | 17 November 2016 Bankof America 2
Merrill Lynch
HOUSE_OVERSIGHT_014372