If the economic crisis continues to unfold, the financial services industry with great challenges. The crisis is rooted in continuous imbalances, such as long periods of low interest rates, rapidly rising asset prices, and massive credit and savings imbalances. The 2007 and 2008 reports from the World Economic Forum predicted these changes when continuous risk for the market.
Previous decades of exceptional growth and capitalism at its best now have caused the market to adjust to the tightening credit conditions, growing State intervention, slows pace of globalization, and no economic growth. With the increasing regulation in the United States and the decreasing availability of credit, the industry is facing a significant risk of stunted growth. The global recession has also consequences for the financial sector as a result of the capital markets and dropped the total demand, according to Max von Bismarck, Director and head of Investor Industries.
This article gives leaders, employees and investors in the financial services industry with five unique and timely trends in the forefront of their growth strategies for the next five years. These five major trends will shape the post financial crisis in a holistic and systematic manner.
FIVE MAIN TRENDS
Global Banking. According to the world bank, while many banks, such as American Express, Citibank and JPMorgan Chase that activities in several countries, they are relatively regional in the United States. In order to grow, the emerging markets financial sector must infiltrate. For companies that have a more aggressive growth strategy, the spreading to emerging markets such as Africa and Asia have offers unprecedented possibilities for profit and a larger market share.
IT PLATFORM PARTS. Network World confirms that the financial service business strategies of companies needs to be changed for the new dynamics and the intricacies of the current market. Immediate access to information and the integration along product lines and geography are a must for future success. With the need to provide information to a global market, companies need to reduce costs. A cost-saving initiative is the use of the platform sharing; such as mobile phone companies that collaborate with local companies to reduce costs and to increase the access, financial companies can do the same.
E-BANKING. A special report from The Economist sees that with 3.5 billion people with mobile phones and an expected 10-20% year-over-year growth, personal and business banking transactions are carried out by means of cell phones more and more. E-overhellings power is quickly becoming an increasing need in order to compete in the market. E-banking capabilities provide companies with essential flexibility and differentiation in the market by means of internet-based service applications.
MOBILE MONEY. The increase in use of mobile phones in emerging markets makes mobile money a safe, low cost initiative for the financial sector. It is an easier way to transfer money to family and friends, money is sent, and payments and withdrawals can be made without ever to a physical bank or payment center. M-Pesa, an early developer of mobile money, concluded that mobile money "has enormous social and economic benefits."
SELF-SERVICE. Self-service and the customer must be a primary focus for financial service companies in this new world, according to IBM. AppViewXS is a self-service portal companies can buy, so customers can check the status of their account and get instant access to available services. Customers questions and concerns are addressed more quickly, says a representative of IBM. This technology automates many processes, the result is that the work pressure of the staff is reduced, while representatives to work faster and more efficiently.
Financial services companies have to be sustainable, steady expansion in emerging markets to grow in the future. Deloitte and Touche Research reports that the financial service companies have not positioned to take advantage of more geographically spread opportunities. More than 93 percent of the executives interviewed for this report acknowledged that their companies "are not listed in a globally integrated way."
The same report states that financial firms should invest off of veteran or mature markets and in the direction of the emerging markets, because "in 2025, will be matched by other markets markets veteran with a faster growing economies and increasingly sophisticated financial product appetite." US offers free on-site parking,