I work a lot of clients that operate in the Financial Services industry and I had the possibility to assess the challenges that this industry is facing and those that are not that far ahead in the future.
One of the most important elements when dealing with change management is the ability to anticipate it and not to react to it. It is not always possible to anticipate all changes, but planning is an activity that can be carried out successfully for most of the changes ahead.
Let’s have a look at the most important expected changes in the Financial Services industry:
From the market point of view:
- Regulation and government interventions
- Emergence of new markets and increased competition
- Traditional markets (e.g. retail banking and branches) closing
- Shift in the customer expectations and demands
From the technology point of view:
- Digital banking becomes more and more prominent
- Prominency of cyber security and fraud issues
- Automation of most services
From the operational point of view:
- Changes in the relationship and interaction with the customers (requirement to segment the way to serve and interact with them also considering the age demographics)
- Consolidation of operations
- Change in strategy and focus on digitalisation and automation, clients’ relationship and profitability – with an eye to company reputation and social responsibility
Some of these challenges are the same across different regions. Other are more prominent in some regions (for example the question marks relating to the regulatory landscape post Brexit).
When devising your strategy take these challenges into consideration and you will be well ahead of your competitors: most of the organisation in the Financial Sector react to change and do not anticipate it. If you are in the position to plan for expected changes and to anticipate them, you are already in a winning position.