Does your organization have the resilience to thrive amid an unpredictable future?
The COVID-19 pandemic has accelerated the change in customer behaviors forcing many businesses to shift their strategies and strengthen their digital capabilities to remain afloat. Many of these behaviors will become the new normal. It is imperative that companies capitalise on these changes in the short term by activating capabilities to deliver and capture critical business outcomes.
While the new normal presents profound challenges for financial institutions, patches of opportunities exist. Financial Services leaders shouldn’t lose sight and utilise this unprecedented time to self-disrupt and transform.
We see these 6 emerging trends shifting the competitive landscape of financial services:
- Empathy-driven engagement – In addition to financing the SME sector, financial institutions need to step up and find out how they can help enterprises resume their business, survive the impact and grow.
- Embedded finance – Today’s era is not only about banks to become integral financial partners of their customers, it’s also about becoming strategic partners of their customers’ life journey tapping on both financial and non-financial moments.
- Embracing the ecosystem – We see rising M&A activities with FinTech in the near future as well as an increase in collaborations where demand surges. In addition, new business models will replace traditional ones.
- Elevate the trust index – Trust plays a central role in which financial institutions present themselves to their customers. It falls into 4 different categories namely physical trust, digital trust, emotional trust and rational trust.
- Emerging tech acceleration – Firms which are leveraging on digital transformation and digital technology prove to be resilient despite the pandemic. Now is the time for financial institutions to step up and invest in technology such as 5G, IoT, new use cases on blockchain, contactless everything and quantum computing.
- Enterprise Adaptability – Enterprises need to become not only agile but also adaptable. Given the uncertainty of the crisis, it’s important for firms to focus on i) creating a frictionless operating model, ii) being digital and work remotely, iii) robust continuity iv) comprehensive risk framework.
The world after COVID-19 may be unpredictable but the one thing that we all can foresee is that disruption will continue apace. Customer behaviour and expectations will continue to change rapidly and financial institutions which can act quickly and effectively will be able to rise above their competitors.