In a changing world, the financial services sector is facing many challenges. Dynamic forces continue to redefine and reshape the sector, keeping many players firmly on their toes.
In a sector known for its “slow but steady” approach to change, the days of complacency and traditional thinking are long gone. In the face of digital disruption, companies need to leverage new technologies to lift performance and keep pace with competitors. And with non-traditional competitors shaking up the sector, companies need to adopt new modes of thinking and innovative business models.
At TAS, we recently canvassed some of our clients, finding out their biggest concerns and fears about their business prospects in the future. Here are five key challenges to be ready for:
Increasing competition is forcing traditional players to rethink their entire business strategies.
Startups and non-traditional players are shaking up the established order, leading with customer-centric innovation and faster, more mobile technologies.
Emerging technologies are a threat if not embraced as an enabler.
In today’s tech-savvy world, customers are increasingly turning to the latest technologies and providers, such as FinTechs
Regulation is impacting business models and economics with a greater focus on compliance.
With new tech platforms constantly emerging, potentials risks and threats are unpredictable. APRA, Australia’s Prudential Regulation Authority, has created tighter regulation for finance business models.
Cyber security is paramount to rebuilding trust.
In an uncertain climate, clients, employees, suppliers and regulators have heightened fear around security breaches. To rebuild trust, seamless cyber security is crucial.
The rise of the customer.
The winners of tomorrow need to provide seamless customer experiences. Addressing specific customer needs, not pushing products, is the way forward.
To stay ahead of the game, here are the top five priorities for 2016:
- Find a FinTech provider for your technology solutions.
To carve out a place in a hypercompetitive sector, financial institutions need to embrace new and innovative solutions. Finding a startup or FinTech provider can create simpler, more efficient implementation, lower costs through aggregation, and improved service quality through problem-management techniques.
- Implement seamless security and compliance measures.
An outdated security system is not only an organisational constraint in a company’s business model, but damaging to their customer base. With higher customer demands and expectations, implementing an advanced technology system is the way forward.
- Aim high with analytics; mobilise your data.
Aiming high with analytics means keeping track of your data through advanced technology and failsafe security measures. Sophisticated analytics and data will help your business monitor any shifts in sales, customer preferences and industry trends.
- Create a customer-centric culture.
With the rise of the customer comes a pressing need to create a customer-centric culture. Marketing strategies need to be tailored to meet individual customer needs, driving a customer-centric culture and a loyal client base.
- Implement a social media strategy.
In all likelihood, social media will be the primary medium financial institutions use for customer engagement. Being an opinion-oriented channel, social media has the power to amplify an organisation’s reputation.