Financial services firms are facing a more diverse set of threats than ever before. While the last five years have been abuzz over fintech startups unbundling bits and pieces of the financial services industry, it really goes far beyond that when you consider constantly changing government regulations and new non-traditional threats from outside the industry.
As organizations get squeezed from all sides, incumbents should look to leverage brand recognition, capital, and their user base to their advantage.
We are experiencing the largest wealth transfer in human history. Over the next 30 years, $30 trillion of assets will be passed down from Baby Boomers to their Gen X and Millennial heirs. It’s predicted that 95% of these next-gen beneficiaries intend to abandon the incumbent institution and 50% expect digital-first interactions. This will have knock-on effects not only across the industry but across the entire global economy.
Large financial services firms will need to ask themselves how well they know this next generation to best cater to their needs and wants.
Employment trends are shifting away from traditional jobs to an on-demand workforce. Individuals are now earning money in a combination of ways through digital businesses like Uber, TaskRabbit, and Etsy. Today, 34% of the US workforce participates in this gig economy, and by 2020 that number is expected to increase to 43%. The problem: traditional banks and wealth institutions aren’t aligned with the needs of this new workforce.
Institutions must look to inject what is happening in this landscape into their existing products and services in order to maintain relevancy with digital natives.
Whether you are reimagining your customer experience, launching a new digital product, or digitally transforming your entire organization, the key to winning is getting started.
We sat down with top executives across Fortune 500 financial firms who are taking action today. Hear from your peers on how they're tackling these three megatrends and transforming their organizations from the inside-out.