The financial services sectors include all services connected with managing money and personal finance as well. A direct consumer market will include Insurance, Savings, investments, banking and some innovations in the digital world like cryptocurrencies, UPI enabled transfers, Peer to peer transfers etc…,
In many countries, the financial industry is facing big challenges as digitization sets in. All activities performed by the financial services industry were either handled in person, on papers or through the computer, are now changing to digital interfaces. The impact of this change is even higher on the financial industry because of the global nature of the services.
If we look at this picture from the bank’s point of view, it’s then a matter of perspective, to some it might look like the glass is full and to others that the glass is half empty.
On one end the financial services industry seems to see an unparalleled change, factors that are uniquely environmental, like the slow macroeconomic growth, rising regulatory capital, and operating costs, in developed markets a lower interest rate environment, devalued currencies, to name a few amongst others.
And on the other end, all the change agents can be summed up in one word called digitization. The rapid growth of technology and the way it is integrating itself in the financial services industry is posing a real treat, to the financial services industries if they do not consider changing their methods. Digitization could be a cause of concern; customers are continuously resetting their expectations based on their experience with other business.
However, if the financial industry truly embraces digitization and moves from digital banking to truly digital banking, they will open a sea of opportunities, which will enable them to reduce costs and efficiently and effectively do their business. Digitization offers unique service delivery, as it has enriched decision making and with real time actionable intelligence.
Most financial sectors have recognised this need for change and are introducing or rather accepting the new trends to enhance their business opportunities.
In the past, most banks did not feel the need to market themselves or to have an online presence. Over the past few years, banks and other credit unions have seen the impact of an online or mobile presence, it helps them sell their products and services up to three times higher than the best branch. All analytical tools are applied to gain traffic on their websites, they are getting around into promoting their digital properties into selling machines and it is proving resourceful. Big data innovations are also assisting the financial services industry to connect and communicate with the customer in an impactful manner, by being able to identify precisely what the consumer wants and predicting their needs in a more proactive approach.
Creating a Cashless Atmosphere
Mobility and connectivity are merging to make the dream of the cashless transaction come true. Integrated and streamlined technology makes it easier to settle accounts, it also protects parties from fraudulent transactions.
New technology is making a big impact in the financial services industry, big data, integration of mobile apps into financial services along with Artificial Intelligence are all being used as innovative measures by companies in the marketplace.
Accepting Emerging Trends
The financial services industry is recognising the impact of Bitcoin, Blockchain, and digital share dealing. Blockchain could completely renovate financial services. So most banks and start-ups are aggressively exploring the technology that drives Blockchain, as it could significantly lower the costs of financial activities.