Since 2008, Financial Services have has to adapt to a lot of "new normals."
Open Banking, new regulatory requirements, blockchain technology, crypto trading, digitised services and a historic, generational transfer of wealth were all on the horizon.
We’re looking at a decade of powerful and profound change. Today, what drives growth and attracts customers is more complex than being the biggest industry player, seeking the biggest profits.
The traditional values and needs that define wealth management, quality and customisation for example, need to be translated into an increasingly digital context.
Where established brands could rely on familiarity, new expectations like accessibility and convenience have changed the landscape of which businesses win clients loyalty in the financial sector. Historically, a lot of money has been thrown into internal digitalisation projects that become black-holes for resources, in a misguided bid to go it alone in meeting new expectations.
The role of this report
This report investigates this idea of digitalisation - going beyond simply moving physical into digital, and to fundamentally rethink financial products from the conceptual to execution. It is divided into three sections, and explores the major trends affecting those on the rocky journey to finding their place in the financial landscape of the future:
The rise of automation:
Being capable of scalable growth is vital for all financial businesses, and the cost of supporting the associated administrative processes is an inherent part of this scalability. Automation can reduce overheads and increase productivity, thereby facilitating growth that was not possible otherwise.
A different kind of customer:
Now that expectations, needs, consumer behaviours and demographics are all beginning to change, the competition to meet the new demands is rapidly accelerating - the need to address these changes has never been greater for financial businesses.
Business models for the future:
Preparing for the future means more than just adding a few token digital features to business capabilities – facilitating where and how the technology operates internally is just as important as having it in the first place.
This report does not aim to sound the death knell of traditional finance as we know it but to indicate the gradual decrease of relevance for the “pre-digital” approach. The report indicates a real need for change by pointing to the implicit needs of traditional finance to reduce costs, save time and stay ahead of the curve.