Financial services consultant Kirk Chewning regularly helps some of the world’s most successful companies achieve even more impressive results. As such, he and his peers at Cane Bay Partners have plenty of insight into where the industry is heading. In one post on his personal blog, Chewning detailed some of the most significant trends and developments in the financial services industry today.
An Industry That is Evolving More Rapidly Than Ever
Like many others, the financial services industry has already been transformed profoundly by technology and is still undergoing plenty of related changes. The trends that Chewning identified as most striking all reflect additional technological developments. With each of these affecting the financial services industry in different ways, the Cane Bay Partners consultant highlighted the following developments as being most noteworthy.
- Mobile banking. Smartphones and other portable, digital devices are seemingly everywhere. People in many developed nations now rely on their smartphones for Internet access more than any other types of devices. Naturally enough, smartphone-focused consumers wish to be able to leverage those devices as fully and regularly as possible. As a result, banks all over the world have been devoting large amounts of resources to developing mobile banking services that are even more robust and useful.
- Virtual banking. Even small towns used to host one or more bank branches, but that is starting to change. Banks that do away with physical locations altogether have been winning larger shares of business with every passing year. Not having branches to staff means banks can pass the related savings on to their customers in the form of higher interest rates on deposits and lower fees. That can be enough for a bank to prevail over the competition even when it does not offer a traditional type of service.
- Big data. Just as with companies elsewhere, banks are increasingly using powerful computers to draw conclusions about huge collections of data. Big data is enabling banks to better serve their customers and plan for the future.
The Increasingly Important Role Technology Plays for Financial Services Companies
With all of these trends reflecting an increasing use of technology, the financial services industry clearly has plenty of other surprises in store. Chewning and others who track the industry closely tend to see technology as becoming even more central to it in the future.