While the economic crisis continues to unfold, the financial services sector is facing serious challenges. The crisis is rooted in the continuing imbalances, including long periods of low interest rates, rapid increases in asset prices, and massive credit and savings imbalances. The 07 and 08 Report by the World Economic Forum provided these changes as the continued risk to the market.
previous decades of exceptional growth and capitalism at its best now have caused the market to adapt to tighter credit, growing government intervention, slowing the pace of globalization, and no economic growth. With increasing regulation in the US and reducing the availability of credit, the industry faces a significant risk of stunted growth. The global recession is also affecting the financial sector because of the capital markets and a decrease in aggregate demand, according to Max von Bismarck, Director and Head of Investor Industries.
This article gives managers, employees and investors in the financial services sector, with five unique and timely trends to keep in the forefront of their growth strategies for the next five years. These five key trends will shape the financial crisis post in a holistic and systematic manner.
five key trends
global banking. According to the World Bank, although many banks like American Express, Citibank and JP Morgan Chase do business in different countries, they are relatively Regional United States. To grow, the financial sector must infiltrate emerging markets. For companies that have a more aggressive growth strategy, the spread of emerging markets such as Africa and Asia presents unprecedented opportunities for profit and increased market share.
sharing platformIT. Network World confirms that financial services companies business strategies "should be changed to the new dynamics and complexities of today's market. Instant access to information and integration along the lines of product and geography are a must for the future success . with the need to provide information to a global market, companies need to reduce costs. a cost effective initiative is the use of platform sharing, such as cell phone companies that collaborate with local businesses in order to reduce costs and increase access, financial companies can do the same.
e-banking. A special report by the Economist shows that with 3.5 billions of people with mobile phones and a year 10-20% expected on year growth, business and personal banking transactions are conducted via mobile phones more and more. So, the ability to e-banking is fast becoming an increasingly requirement more to compete in the market. e-banking capabilities provide organizations with essential flexibility and differentiation in the market through the service Internet-based applications.
MONEY MOBILE. The increase in cell phone usage in emerging markets makes mobile money safe, low-cost initiative for the financial sector. This is an easy way to transfer money to relatives and friends, the money is sent, and payments and withdrawals can be made without ever going to a physical bank or payment center. M-Pesa, a leading developer of mobile money, concluded that mobile money "has enormous social and economic benefits."
self-service. Self-service and customer should be a primary objective for companies in this new world of financial services, according to IBM. AppViewXS is a self-service portal companies can buy, so customers can check the status of your account and get instant access to available services. customer questions and concerns are addressed more quickly, says an IBM representative. This technology automates many processes; the result is that the staff workload is reduced while representatives operate faster and more efficiently.
financial services companies need to have sustainable, steady expansion in emerging markets in order to grow in the future. Deloitte and Touche Research reports that financial services companies are not positioned to capitalize on the most geographically dispersed opportunities. More than 93 percent of executives surveyed for this report acknowledged that their companies "do not function in an integrated manner at the global level."
The same report states that financial firms need to invest away from the veteran or mature markets and into emerging markets, because "by 2025, veteran markets will be rivaled by other markets with economies in faster growth and increasingly sophisticated appetites of financial products. "US based companies can look to the Japanese and African markets for expansion opportunities. The Kennedy Consulting analysts believe that the market rebound from the global financial crisis in 2011, but there will be no return to robust levels before 07 until much later in the decade; hopefully, the five key trends in this report will help executives, employees and investors in the financial services sector to look towards a strong future sound.
In addition to growth strategies, in 02 the Journal of Business and Industrial Marketing, Henson and Wilson discuss the extreme changes that have occurred in the financial services sector, and many companies are trying to develop and implement successful strategies on innovative technology and customers. Apart from the normal ups and downs of the financial world, technology and innovation will always prevail as a win-win for the financial services sector. Why online banking has become the norm for most customers, the technology will be very important in the strategies of these companies.
With the customer at the center of most of the trends in financial services companies, the creation of new values for their current and potential beyond current expectations of customers will be a top priority. The need for convenience mixed with the technology makes mobile money a major initiative in the emerging and developed markets. Many companies have paid the speed, the ability to pay, not swipe the card, as part of their credit card services. A chip embedded in the card allows payments to be made by putting the card close to the payment processor. Mobile money will be an expansion of payment and money transfers without the need for a card, the need to go to a physical bank, or use Internet banking. Payments, transfers, deposits and withdrawals can be made with a mobile phone.
The World Bank agrees that innovative technology and an increase in e-business strategies will lead to much lower costs and greater competition in services financial. The Internet and related technologies, the World Bank says, are more of new distribution channels; They are an inexpensive way, different and very effective to provide the same services. Since financial services companies must grow organically, retain customers and meet the growing needs of customers in terms of service and convenience, the partnership with the new technology companies will allow them to lower their costs and be competitive.
incumbents, such as Amex, Citibank, and others can collaborate with groups such as cable technology savvy Google Alumni who are not risk averse, and who own fledgling technology companies that are reshaping the industry with a new wave of innovative products, write Spencer Ante and Kimberly Weisul of business Week. Mobile Money Ventures is one of these fledgling company that is a supplier at the forefront of alternative financial services products. Small businesses like these are able to provide well-known financial companies the means to open in emerging markets where there is a need for collaboration with other companies to achieve and then get the local customer base.
The race is fueled today not only by profitable customers, but also by the companies that are the most efficient and economic. procedural and culture clash will be the result of expansion in unknown markets as we see from the history of Citibank in Asia Minor. But in the long run, more stringent standards, new technologies and improved business processes will cause the expansion in emerging markets not only changing customer demographics (both geographically and by customer base), but also to improve the global economy and the future of the financial services sector. Maintain previous trends at the forefront of the strategic plans of managers, financial companies will be bigger and better than ever rebound.
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