What are Financial Service’s Greatest Challenges?
In 2019, approaches to operational excellence within financial services are driven by factors that have never before been as important as they are today. Below, we explore the greatest challenges that today’s Financial Service industry is facing.
The rise of digital disruptors within the industry is one of the greatest threats to established financial services players. With the advantage of greater agility in keeping up with the demands of a changing market, newer businesses can reap the rewards that accompany freedom from the burden of outdated legacy systems, institutionalized practices, and extensive stakeholder obligations. Shares of the millennial market are at particular risk here. 50% of this demographic have expressed a willingness to end their loyalty to traditional financial service institutions in favor of the GAFA companies (Google, Amazon, Facebook, and Apple).
The Changing Customer
In this new age of finance, customers have less patience, greater knowledge, and more options. Consequently, customer experience has never been more important than it is today. Our 2019 OPEX in the Financial Services Industry Report found ‘Improving Customer Satisfaction’ to be the leading driver among the OPEX initiatives of over 200 surveyed executives, and rightly so. Certainly, improved processes, better technology, and positive company culture are crucial to achieving any level of operational excellence, but if they are not designed with customer-centricity in mind, their value is uncertain.
Talent and Employment
The skills gap is a pressing concern. With the increasing introduction of robotic technologies, financial services employees must become accustomed to the presence of their new digital colleagues while also learning how they themselves can bring more value-adding dimensions to their role. How organizations approach employees with this change will determine how successfully they will be able to respond to the need for it. As demonstrated by Michael Meyer of GNY, financial services providers must put greater value on nurturing the emotional intelligence of their employees to ensure that their product offering stands out in an increasingly competitive market.