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Building Customercentric Business
The Future of Financial Services
In this report, the role of various financial service players is highlighted at a time when the anticipated increase in competition between incumbent banks, new universal and differentiated banks and non-bank payments service providers is likely to have a positive impact on branchless banking, payment platforms and digitization.
The pace of change in the sector has left organizations grappling with multiple fraudrelated challenges also. While financial crime appears to be a major concern for banks as the number of incidents and value of frauds rise, there appears to be a certain lag in the implementation of fraud risk management measures. With the current economic slowdown and increased dependence on technology, incidents of fraud are also expected to rise further. Continued reliance on manual controls to detect red flags and well-known frauds such as diversion of funds and fraudulent documentation (leading to loan fraud) continue to impact the sector more significantly than cyber-crime and identity theft, which currently dominate the global banking fraud landscape.
Technology trends and a shift to digital business, accompanied with the revolution in the smart systems have caused a massive re-positioning of the financial services market from a fundamentally labor-based model to an automated processes driven business model. We see an emergence of new, agile and hitherto largely unregulated players which are disintermediating the traditional incumbents. Regulation is making it harder to innovate and to grow, whilst legacy strategy, infrastructure and thinking are preventing the existing players from responding aggressively to these threats.