Top 3 Challenges in the Financial Services Industry
What do your peers think about Financial Services Industry?
Financial Services professionals state that they mainly have 3 kinds of challenges: rapid changes in technology which requires much adaptability, increasing competition creating difficulties in the industry, and high customer requirements.
Financial Services Top 3 Peer Challenges
The fast pace of technological change and customer expectations require companies in the finance sector to address projects like mobile banking, next-generation platforms, and cyber security with more energy than ever before. Indeed customers live with their era and smartphones and internet have reached levels in people’s every day life that even the most conservative companies have to start adapting.
Financial services companies around the world are facing major challenges as competition keeps growing (this comes along with new technologies). Firms have to operate in a demanding and highly competitive environment, especially due to new kinds of competitors (social lending, FinTech, etc.)
Adopting a client-centric value offering
Enriching and increasing the business value from an improved customer experience is vital nowadays. While customer expectations and behaviors become more and more demanding, companies within the sector (such as banks or investment funds) have to improve their offer if they want to stay competitive.
- Over liquidity in many markets, resulting in deteriorating margins
- High interest rates
Research-based trends and short-term forecast
Research states that the financial services sector encounters challenges in the following fields: new product development, risk management and asset allocation (Credit Suisse).
For Credit Card Issuers, Online marketing budget is projected to grow from 28% of total marketing budget in 2014 to 40% in 2019 (eMarketer).
Mobile-based payments in the U.S. was approx. $50bn in 2014 and is expected to reach $142bn by 2019, 23% CAGR (Forrester). Increase in mobile payments helps boost transaction volume for MasterCard, 12% YoY and Visa, 11% YoY (Forbes.com).
Gain more financial services industry insight and get to know the latest trend in the sector by visiting www.reportlinker.com to start your market research.