Financial Services in 2030: fundamentally transformed. Are you ready?
Nearly all industries, as well as governments and citizens, have been transformed by the pandemic. Financial services is no exception.
By 2030, the financial services industry will be fundamentally transformed – reshaped by tectonic movements that have been driven by technology, digitisation, regulation, evolving customer expectations and other disruptive forces.
As a result, the 2030 financial services landscape will require a new way of thinking. Some firms will thrive. Others will not make it. So how can you position your own business to be one of the survivors?
Our recent report, 30 Voices on 2030: The New Reality for Financial Services, brings together insights from thirty diverse senior leaders within financial services and beyond. They articulate a vision of the future industry landscape, with a wide range of predictions for possible future trends and realities. Some of these are already more established than others, such as digital transformation, the continued migration to online services and the decline of cash. Others are more speculative.
The predictions include:
- Instant risk analysis – instead of taking days and weeks to price risk and credit and process loan applications, reliable data will already be accessible
- An end to cash – cash will be replaced by contact-less, electronic payments using mobile and wearable devices, and central bank digital currency (CBDC)
- Real-time financial advice – data, machine learning and advanced algorithms, powered by quantum computing, will provide a constantly updated information stream about a person’s financial position, generating insights and advice.
The issue for financial services firms is being ready for whatever change may come and being able to adapt and pivot if required.
- Digital transformation will remain key
To harness new technologies, from AI and machine learning to the “digital twin”, businesses must be digital. AI is already making decisions for customers, with data the currency of growth.
- Having the right people is critical
Increasingly, there will be a premium on emotionally intelligent employees with inquisitive, curious and perceptive mindsets. The battle for talent will be global and will only intensify. Data dextrous and innovative, these skilled employees will develop, deploy and drive new technologies as they emerge.
- Focusing on customer experience is essential
Financial services are being absorbed into immersive customer episodes. Trust will be the key differentiator, as well as anticipating consumer needs as they evolve.
- Being socially conscious is non-negotiable
In a world where ethics, sustainability and social good are front of mind for customers, businesses and governments alike, your response, what you stand for and how you grow over the next decade will truly matter.
The pandemic has forced an unprecedented focus on solving the problems of “now”. But we still need to see what is over the horizon. In these volatile times, it’s incredibly important to ensure that financial service industry leaders have sufficient long-term focus on the business environment they operate in.
Financial services leaders must ask themselves which side of the equation they want to be on. What will they do today to get there? Have they defined
a clearly articulated strategy that is understood by their businesses? And do they really have the capability to execute at the scale required? Change will not be incremental, and uncertainty is here to stay.