According to a recent survey, the financial services sector accounts for 16% of the global economy in terms of GDP.
Despite the industrial risk and regulations in the financial industry, leading banks are looking beyond compliance to optimize their business and enhance financial performance. The industry is witnessing a transformation toward consumer-centric environment to improve additional capital, increase liquidity, and reduce leverage. In the hassle to enhance risk management capabilities and build a nimbler infrastructure, several factors are hampering the growth of the financial sector. These factors include:
- Global economy: With the recent economic depression, prominent banking services providers had to look for alternative solutions to sustain their presence in the market. Also, with the recent Brexit issue, financial services providers were going through a prolonged period of negative growth. The financial services providers also witnessed a drastic fall in investments owing to lower economic growth.
- Regulations: With the uncertainty in regulations, leading service providers are forging risk and compliance initiatives to drive efficiency to meet applicable laws and regulations. Also, over the years, the expectations of the regulators have been increasing considerably, and leading organizations are taking necessary measures to remain abreast of regulatory and legislative updates.
- Digitization: Beyond the conventional banking system, leading organizations need to rely on high-level IT operations to optimize their business process and interact with customers in a seamless manner. A recent report also shows that 40% of the US citizens are not walking into the banks to make necessary monitory transactions. Also, with the growing concern for cybersecurity threats, global financial services providers are struggling to keep up with the authenticity and security needs of the customers.
To counter such forces, the banks are leveraging competitive intelligence solutions. Infiniti’s competitive intelligence solution for financial services providers works on the principle of identifying the competitive trends and opportunities to find potential functionality gaps to enhance their business performance. The competitive intelligence solution also focuses on benchmarking the services offered with that of the direct competitors.
The Business Challenge
- The Client: Financial services company
- Area of Engagement: Competitive intelligence
[spacer height=”20px”]A leading financial services provider wanted to profile the direct competitors and anticipate the challenges while entering niche target segments. The client wanted to minimize their exposure to risk and improve their overall commercial performance. The client also wanted to understand the marketing strategies and look for promising solutions to gain continuous growth and increase profits. With the help of competitive intelligence, the client wanted to gain a clear understanding of the business process and competitor protocols and strategically position customized service offerings.
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To analyze the variety of competitor structures and market environments, the competitive intelligence experts at Infiniti carried out extensive research and interviews with prominent stakeholders in the financial services industry. To refine the current product suites, the competitive intelligence experts at Infiniti also compiled information from various secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution Offered and the Business Impact
The competitive intelligence solution offered by Infiniti helped the client gain a precise and concise view of the competitors and their service offerings. With banks, credit companies, and insurers being the heaviest competitors, the engagement sought ways for the financial services provider to efficiently keep track of the competition and offer personalized services to the customers. With the help of this engagement, the client was able to stay one step ahead of the competitors and define the market presence. The engagement also helped the client gain timely competitive insights and make market recommendations.
The future of the financial services will be transformed by disruptive technological forces such as artificial intelligence and machine learning, blockchain technology, and cryptocurrencies. Moreover, leading service providers will go on par with customers’ trust and brand value and tailor offerings and experiences accordingly.