According to the “Intuit 2020 Report: The Future of Financial Services,” the next decade will see a radical transformation in the financial services industry.
Increased industry consolidation combined with new business and even new competition from non-traditional competitors, will change the landscape dramatically in the coming years. All this is due to increased regulatory oversight and measures as the impact from the Great Recession will continue for some time. Walmart, for example, now offers an expanding array of financial products including small business and consumer credit, not to mention consumer financial services.
THE NEXT DECADE IN FINANCIAL SERVICES
- Non-traditional competitors using new technology, business models and, in some cases, regulatory advantages will target attractive market segments.
- Scale and regulatory-driven industry consolidation will require most financial institutions to decide whether to stay independent, be acquired or become an acquirer.
- Strategic partnering will increase, both as a way to gain scale and as an alternative to consolidation.
- Industry change will create growth opportunities. Financial institutions that don’t adapt are at risk of being relegated to highly regulated, low margin and growth providers of commodity services.
Consumer demand for financial services will increase in all age groups, in particular Boomers and Gen Y, not only in their needs, but in the services they purchase. How they purchase those services is also shifting, which is where technology plays a huge role. Cloud computing platforms and apps, will combine with advanced analytical tools, social media and mobile computing that will literally reshape the industry.
Over the next decade, the financial service industry will shift its focus from transactions to customized value-added services. And it will take a different kind of professional, one who can bridge the gap successfully between technology and personal connection, to be successful.