What Are The Global Trends For the Financial Service Industry?
Earlier
decades of capitalism and exceptional growth at its best have now caused the
market to growing government intervention, adapt to tighter credit, no economic
growth, and slowing pace of globalization. With decreasing availability of
credit and increasing regulations in the United States, the industry faces a
significant risk of diminutive growth. The global depression is also affecting
the financial sector because of decreased aggregate demand and capital markets.
Barry
Bulakites is
one of the financial services industry’s most recognized speaker and innovator,
he has on average 250 speaking engagements yearly and has had several radio and
television appearances behind him.
These
five key trends will shape the post financial crisis in a systematic and
holistic manner.
GLOBAL
BANKING. The financial industry will have to infiltrate emerging markets in
order to grow. For companies that have a more belligerent growth strategy, the
spread to emerging markets such as Asia and Africa presents increased market
share and unparalleled opportunities for profit.
IT
PLATFORM SHARING. Immediate access to data and integration along geography and
product lines are a must for future success. Firms must decrease cost with the
need to supply information to a global market. One cost effectual initiative is
the use of platform sharing; like cell phone companies that collaborate with
local companies in order to increase access and decrease cost, financial firms
can do the same.
E-BANKING.
In order to compete in the marketplace, E-banking capability is quickly
becoming an increasing requirement. E-banking capabilities provide companies
with essential differentiation and flexibility in the market through
Internet-based service applications.
MOBILE
MONEY. The enhance of mobile phone usage in emerging markets makes mobile money
a low cost, safe initiative for the financial sector. It is an easier way to transfer
money to friends and family, money is sent, and withdrawals and payments can be
made without ever going to a payment center.
SELF-SERVICE.
Self-service and the consumer should be a principal focus for firms in this new
financial service world. Customer concerns and questions are addressed more
quickly. This technology computerizes many processes; the result is that
personnel workload is reduced while representatives operate more efficiently.
With
the consumer at the center of most developments in financial service firms,
creating new values for their potential clients beyond present expectations
will be a top priority. The requirement for convenience mixed with technology
makes mobile money a great enterprise in the emerging as well as the industrial
markets. An entrenched chip in the credit card facilitates payments to be made
by putting the card close to the payment processor. Mobile money will be an
expansion of money and payment transfers without the need to go to a physical
bank, the need for a card, or to use Internet banking. Transfers, payments,
withdrawals and deposits can be made with a cell phone.
As
Barry
Bulakites says, today's competition is fueled not just
by commercial customers, but also by the firms that are the most cost effective
and efficient. But in the long run, new technology, tighter regulations and
improved business processes will cause escalating in emerging markets not only
to alter the demographics of the clients, but also to better the future of the
financial services industry and the global economy. Keeping the preceding
trends at the vanguard of managers' strategic plans, financial firms will
bounce back bigger and better than ever.