Staying ahead of the pack
How financial services firms are planning to win
Singapore, 25 May 2015 – 57 percent of global financial services executives believe regulation has enabled growth of their business, according to the results of Deloitte Touche Tohmatsu Limited’s (Deloitte Global) Staying Ahead of the Pack survey. In addition, half of executives expect much more regulation in the near future, with 69 percent feeling prepared for it.
The survey of 200 executives at banking, securities, insurance and investment management firms around the world was conducted to identify the most important issues impacting the industry in the next three to five years. A quarter of respondents worked for firms with more than US$30 billion in revenue.
“Global financial firms are operating in an increasingly disruptive environment, with new entrants and fierce competition becoming the norm. Those that stay attuned to market needs and transform their business in anticipation of new entrants and disruptive trends will reap the greatest rewards,” said Chris Harvey, Deloitte Global Financial Services Leader.
“Today’s financial services field is highly dynamic. Financial institutions realise that compliance is not just about achieving regulatory outcomes and meeting customer expectations. When done right, it can be a significant competitive advantage that enables companies to realise strategic goals while improving profitability. To stay ahead of the competition, they will need a thorough understanding of the forces shaping the industry in order to harness them for growth,” added Ho Kok Yong, Deloitte’s Financial Services Industry Leader for Southeast Asia and Singapore.
Other key findings from the survey include:
- Disruption is becoming the norm - Nearly two-thirds of executives are seeing new entrants impact their industry segment.
- Banking sector seeing more disruption - Compared with the insurance sector, respondents in banking are 50 percent more likely to expect a major impact on their business from new entrants and disruptive trends.
- Innovation is key - Eighty-two percent of executives believe innovation is very or most important in their current environments.
- Regulation varies by region - Respondents in Asia and Europe were two times more likely than those in the Americas to expect a lot more regulation.
- Areas deemed important for market success - Ranked in order of priority, innovation and new offerings; digital transformation; regulations and talent needs are most important.
- Human capital strategy key to success - Talent retention (90 percent), right skills in the right location (85 percent) and talent governance (85 percent) are key strategies.
To read the full report, please click here.