While it remains premature to call time on the financial crisis, a picture of the future financial services landscape – or at least its broad features – is emerging. Driven by the impact of regulation, transformational technology and an emerging focus on customer outcomes, the boundaries between traditional financial services sectors are becoming increasingly blurred.
New breeds of agile and digitally enabled competitors are beginning to challenge established financial service organisations. Questions are being asked over the purpose and the value of traditional financial services institutions. Preserving reputation, culture and trust are issues. Capital is constrained and generating sustainable profits is challenging. And new regulation continues to emerge, elevating the cost of compliance.
Organisations need to evolve to meet these challenges or ultimately risk becoming both uncompetitive and irrelevant.