5 Trends Impacting the Financial Services Industry in 2017 Today, nearly every financial activity is being reimagined in some way, from banking, to lending, to wealth management. Tasks and transactions that once involved human interaction and paper money have overwhelmingly moved into the digital world, and new players are emerging to disrupt the traditionally staid industry. The coming year promises only more of the same. In order to compete in this changing landscape, financial services firms are under increased pressure to adapt to these shifts in the industry.
Here are the five most important trends facing the financial services industry in 2017.
1. The Rise of Fintech Innovators
While the financial services industry used to be difficult to penetrate, recent fin tech innovators have had no trouble moving in and turning the market on its head. These companies are often reinventing a single process, such as lending, while offering a highly-customized user experiences at an affordable price. In order to stay relevant, it is essential that traditional financial institutions incorporate some level of fintech principles into their strategy in order to avoid being pushed out completely.
2. Meeting the Needs of the Modern Consumer
The widespread success of fin tech companies can be linked to the wiring of the modern consumer. The pervasiveness of the Internet has led to the inherent desire to receive goods and services instantly. Not only do consumers today demand a seamless experience, but they want it at the lowest cost and the highest value. Because of this, the concept of customer loyalty is largely a thing of the past. Online comparison tools and hyper-connectivity among millennials means that traditional institutions that relied on building relationships will have to reinvent themselves to keep up. Knowing customers’ demands will be essential for financial services industries, allowing them to be ready with the right product at the right time for younger consumers.