What is the financial services industry?
Financialservices is a broad term used to describe the various offerings within the finance industry–encompassing everything from insurance and money management to payments and digital banking technology.
There are a multitude of stakeholders and moving parts within financial services, from credit card issuers and processors, to legacy banks and emerging challengers, and with financial activity becoming increasingly digitized, especially as consumers are choosing to manage their finances from home amid the ongoing coronavirus pandemic. Financial institutions and start-ups are sharpening their technology and expanding remote services.
Technology in the financial services industry
There is no doubt that advances in technology over the past decade have allowed many businesses that have embraced technology to innovate and grow. There is however one industry that has evolved rapidly over the past 5 years with the advances in technology and that is the Financial Services sector.
A recent article by Angus Panton- Head of Banking and Financial Services at Expleo found that 62% of people consider faster banking to be one of the best development technologically in the past decade. This shows that customers have embraced technology and easy access to key data they require on an as and when basis.
To what extent has technology changed the FS market?
- Technology has allowed for the market to evolve by introducing new banks that can challenge and rival traditional banks. Banks such as Monzo put pressure on the sector to grow and evolve.
- Digital disruption is now part of the core strategy for traditional banks who don’t want to get left behind in an industry that has embraced technology.
- AI allows for banks to collate data on customer behaviour and therefore results in a more personalised experience for the customer.
- Chat boxes grant customers a 24/7 service and a faster resolution period for simple issues. During the Covid pandemic this option has saved customers having to go to their banks physically to resolve matters and has instead reduced presence in banks to only those that really need to attend.
- Wider collaboration between banks and FinTechs allows financial institutions to obtain competitive advantage.
Financial services market analysis
The influence of tech-savvy consumers, looming threat of big tech companies, and shifting attitudes of regulators toward new tech, are all impacting the financial services industry.
Financial growth can be achieved with a touch of a button, and whether you’re an individual exploring wealth management options, or a CEO trying to increase the value of your company to shareholders, advanced tech will guide you to success within the finance sector.
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