Financial Services Industry Market Research

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Banks and insurance companies are the main players in the financial services industry. Other players include credit and lending companies, as well as their service providers. Large transnational brands control the industry. These brands use B2B market research to build and sustain a competitive advantage.

Retail Banking

The retail banking market has seen more emphasis on delivering accessible banking services. Companies are also paying more attention to customer relationship management. Also driving growth is the introduction of mobile and Internet banking services.

Mobile Payments

Mobile payments first came into demand in 2014 with the introduction of Apple Pay on iPhones. Android Pay, Samsung Pay, and Microsoft Wallet soon followed. Competitors lost no time in rolling out mobile wallet platforms of their own. Experts expect mobile payment software to net over $500 billion by 2020. This is a compound annual growth rate of roughly 80 percent.

Issuers must now provide these new forms of payment in a challenging marketplace. The stakes are also higher. The average data breach now costs around $4 million. This cost is likely to increase due to the General Data Protection Regulation (GDPR).

Risk Management Research

The modern world has several challenges. These challenges include terrorism, cybercrime, geopolitical shocks, and extreme climate events. Significant upheavals are taking place with business too. Size, experience, and scale are no longer the only predictors of a company’s success. Airbnb, Uber, and other new entrants are wiping out their larger competitors. Businesses will need to find new ways to operate to prevent themselves from failing.

Rising Digital Trends in Finance

Artificial intelligence (AI) and the blockchain continue to disrupt the financial services industry. These trends will impact the marketing, sales, wealth management, investment, and compliance sectors. Businesses are in a critical phase. Companies are moving towards real growth in cognitive computing.

Credit Card Market Research

In recent times the market has seen the launch of several brand-issued credit cards. Examples include The Uber Visa and Amazon Prime Rewards Signature Visa card. Another brand issued card is Starbucks Visa. If rewards are good enough, clients will usually sign up. Retailers often view a branded card as a way to capitalize on customer loyalty. Soon, analysts expect more brands will launch their cards.

Retirement and Financial Planning Market Research

Experts expect that the number of smartphone users will reach 235 million by the year 2020. This number represents 70 percent of the total population. The 50-64 year age group recently saw a significant increase in smartphone usage. Those of retirement age saw a similar spike. Mobile app design is becoming a priority for the various plan sponsors, owing to this shift.

Meanwhile, financial planners are also facing uncertainty. They have to grapple with program changes such as tax reform. Another challenge is the implementation of the Department of Labor’s fiduciary rule. These changes have been occupying most of the wealth management industry’s attention. Firms are also facing pressure to transform business and operating models. They are now required to enhance their front offices with new digital technology.

Financial Advisors, Investors

The entire financial advisor industry is becoming more complex. Retirement plans are moving away from the defined benefit model. Defined contribution plans to fund workers’ retirement are now standard. Financial planners must plan for the individual, and his or her spouse. They also have to deal with financial planning for their clients’ college-age students.

Investors may see faster growth in the US economy due to the recent cuts in taxes and public spending. These measures can also halt the economic expansion if it does not come with gains in productivity. Experts expect emerging market growth to quicken, particularly in Europe.

In Conclusion

Across the globe, the financial services industry is adopting digital technology. Players are using technology to trade securities and financial planning. This integration of technology with business practices improves customer experience. It also drives better quality and minimizes costs. Companies in the industry must continue to adapt and integrate emerging trends. This adaptation will ensure their survival in the market.

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