Final answer:
The decrease in banking regulations is not a challenge faced by banks today; instead, banks struggle with demands for mobile banking from millennials, competition, and reporting capabilities.
Step-by-step explanation:
The challenge not faced by banks today regarding changing demographics is B) Decrease in banking regulations. Typically, the issues banks are currently facing include adapting to millennials and their preference for mobile banking technology, as well as dealing with strong competition amongst themselves. However, generally, banking regulations have been becoming more stringent rather than decreasing, in response to the financial crises of the past.
This is exemplified by regulations such as Dodd-Frank in the United States, which increased oversight of financial institutions. Limited reporting capabilities and competition with other banks are indeed challenges as banks need to have robust reporting systems to manage risks effectively and stay competitive in a highly packed market. On the other hand, the topic of a decrease in regulations does not align with the current trend towards increased oversight and compliance requirements faced by the banking industry.