The financial institutions are now having a paradign shift due to some trend in the financial industry. The demographic and behavioural changes are creating customers with different expectations. The business operating models are now more customer and product oriented. Here are the major trends.
After the financial crisis, the regulatory pressure have hightened the cost of capital. Businesses now have to invest in more capital-intensive businesses. Banks are no longer lending to SMEs and infrastructure. The non-banking financial institutions are offering competitive services to the clients of banks.
The technological advancements are changing the financial institutions significantly. It has created new business models and offered access to new markets. Various low cost services are now available. Technology is also changing the way clients are interacting with financial institutions.
Demographic and behavioural changes
The young generation has various expectations about financial organizations. They are now more comfortable using online and social media platforms.
Need for new leaders
With the advancement of technology and strict regulations, you need to have a good leader on your team to guide you with all your investment decisions. A good leader will be able to understand the financial market trend and take effective decisions.
These four trends are reshaping the entire financial instutions. The restrictions, technological advancement, behavioural changes, etc. are driving the financial market today and we should be well aware of it. You should always know about the market trend so that you can act accordingly.