Just as modern technology has been embraced by most other industries, the turn has come to the Financial Industry to take the leap. It is no longer a question of yet another fix to the patchwork to maintain the functionality between various outdated legacy systems. We suggest that it is time to fully embrace the potential of digitisation and realise that FinTech will become a driving force in an ever faster evolving business model.
The financial industry in general and Private Banking in particular, is considerably behind other industries regarding e-services and efficiency. At FA Solutions we would like to share the trends and changes we believe are unfolding and that are in the back of our minds when we develop our software and as a company. It is our conviction that what is considered modern and pioneering today by a committed investor in e-services will be common practice in as little as a year in their peer group. Others that lag behind with their investment in an adaptable IT environment will find it ever more difficult to maintain, not to mention strengthen their market position.
For how long will customers wait for their asset manager to update the old technology before they vote with their feet?
Our trendspotting have noted increased customer engagement with firms allowing external investments, insurance backed plans and real assets in an open architecture. Clients are also expecting modern online trading and access to external products and markets. Customer-specific, bespoke model portfolios become manageable as technology is embraced. Internet of Things with the further development of automated mobile solutions, robot advice, payment services, transaction flows etc. is evolving at a ferocious speed. The role of the physical advisor is fading with the introduction of advanced electronic advice and tightened compliance. Compliance with an ever growing regulation burden requires streamlined automated processes whilst remaining efficient and profitable.
New entrants on the market are merging ideas from other industries with Digitisation as their watchword. With increased internationalisation and homogenisation of the EU framework, this changing environment provides opportunities for those prepared but threatens those that are not. The Nordic countries have implemented quite rigorous regulations and this creates opportunities for those who are willing. Consumers in the Nordics are early adopters open to new ideas. If you can make it in the Nordics, you stand a good chance of making it elsewhere.
Accenture reports that only 5% of board members in Scandinavia (i.e. ex Finland) have professional IT experience as opposed to 15% in the US & UK. Maybe your first port of call is to look at your organisation on a management and board level.
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Sources and reports
– Forbes: How Millennials’ Money Habits Could Shake Up the Financial Services Industry
– Cisco: Seizing Opportunity in the New Age of Financial Services
– The Guardian: Banking facing Uber moment
– Financial Times: Beyond Banking: Alternative groups seize business from lenders
– Accenture: Bank Boardrooms Lack Technology Experience