5 trends in financial industry you should know about
Financial services industry is one of the most businesses affected by new trends. It is a market that deals with billions of dollars annually so any slight change may cause a huge influence. Trends appear constantly; from new technology to cyber security and big data trends. The best companies are those ones which keep up to date with the new trends and do their best to meet them. Let’s explore the top trends in the financial industry that you should know about if you are a company owner or a client.
1. The modern customers:
Customers are not traditional anymore. They don’t want paper work anymore, they want to apply online. They want to know for sure that their financial services are well-secured. They search for everything online and many other aspects that should be considered by the financial services companies to earn more customers. The loyal, traditional customer does not exist anymore.
2. International expansion:
Modern technologies made companies dream of invasion of the whole world. A company in Japan can have clients in Germany through the online chatting, contracts and customer service. The borders are no longer a burden. All you need to do is to have a proper presence online, experience, a professional team and a global marketing campaign; then your company will be one of the biggest players in the financial services industry worldwide.
3. Artificial intelligence:
It is dominating trend in the market now. While artificial intelligence has been used in our lives for a while in nearly everything; it is used lately in the financial services industry. Some companies are already using it while others are beginning to introduce it due to big data, cloud computing, and faster processing speeds.
Not all companies depend on AI. The companies are limited by the low budgets, operations, strict regulations and resources limitations but it is better to use it.
It is an exciting technology yet misunderstood. It is the technology of bitcoin but it is not just that; it can do more. Block chin means that when a transaction occurs, everyone on the network will know about it.
Today, nearly every company is dealing with block chain.
Block chain is not only used by financial services companies but also governments and other central authorities. There are block-chain specific companies that will introduce this technology into your company.
It is a technology that will be number one soon and there are different types of it. Predictive analytics technology that provides the data needed to build trust with your client and expect the future of your plans. It uses every possible data either new or old to predict well and along with artificial intelligence and machine learning, this technology will be indispensable especially because it will be the base of risk management plans.
Any financial activity is affected by these trends. Being up to date with the latest technologies will give you a lot of advantages in the financial services industry. The financial industry must consider any new trend as it deals with people’s money which for most of people is the most important thing in their lives.
How to start a financial services company?
Financial services companies are one of those businesses that deal with a lot of money and many customers. The company mostly consists of financial advisors, financial planner and teams to manage your account and secure it. There are financial services companies which are specialized in certain aspects regarding finances; the retirement planners as an example.
This guide will help you open your financial services company to start well in the business and understand some main points regarding this.
1. The specialty:
It is important to determine the area that you want your company to be specialized in. If you are new to the business, specialize. If you have a company for years, you may consider specializing in another area as an expansion of your company.
Choose the specialty according to your skills, study and experience. Most companies are actually founded by previous financial agents who worked for years for other companies and now it is their time to have one.
The specialty will help you to identify your clients in order to target them well with your marketing plans.
2. The company’s situation in the industry:
Clients in the financial industry need to put their trust in the company before signing a contract. Why would they trust your new company? Ask yourself this question.
The client wants to deal with an experienced company that is well-known in the industry. If you are new to the business, you need to lower your costs and make special offers to gain the trust of the clients at first.
Evaluate what the competing companies to be able to compete in this industry.
3. The company’s Requirements:
Now, it is time to interview and hire your staff. There are main employees in any financial services company that you must hire.
Hire both experienced agents and new agents. The new agent will learn from the experiences of the experienced agents and you will pay them less money. Agents are responsible for communicating with the clients so choose them well based on their skills.
• Digital marketing agency:
The agency will be responsible for your marketing strategies, analysis of your plans and creating the company’s website.
• Cyber-security team:
Everything now is online. Modern clients want to understand everything online, apply online and sign contracts online. The cyber-security team will protect your company’s’ data.
• Modern technology:
New trends and challenges appear in the industry every day. Every challenge appears with the technology to control it. New technologies are making the business easier and safer so be up to date with the new technologies appearing in your specialty.
You need to make sure that everything you will do from now on is legal. Have your company’s license to be able to open a bank account for your company. Hire a tax advisor to deal with your finances and taxes.
Have a legal team to help you and your clients in understanding any legal considerations in the contracts.
Don’t start your business before making sure that everything legally is OK.
5. Business plans and goals:
It is time to work now. Meet with your employees and partners to determine your business plans and goals. Make sure to have clear plans with the proper analysis tools to determine if these plans will make your company reach the determined goals or not.
Well, now you are ready to start your business. The financial services industry id a very promising market and with understanding everything before starting your business, you will make a lot of money and great success.
Top 3 Challenges facing the financial services industry
Nowadays, every industry is facing challenges especially with the invasion of new technologies and trends. The financial services industry is one of those businesses that are widely affected by the new challenges.
Financial services companies spend millions of dollars annually just to face these challenges. If you are a company owner or you are about to open a company, you need to be aware of these challenges. If you are a client, you need to understand what the challenges are in order to realize why hiring a financial service company may be expensive and to make sure that your money is safe. Let’s explore the top challenges facing the financial service industry.
1. Cyber security:
You may have heard that a company has suffered from a DDoS attacks or phishing. Every financial services company now has a professional team to deal with such threats from individual attackers and organized attackers. There are many types of attacks; Phishing, distributed denial of services (DDoS) attacks, business email compromise, and ransom ware are all challenges that the security team is facing.
In order to face these challenges, the biggest companies in the world agreed on having cyber risk management standards that every company should follow.
The main problem with cyber-attacks is that if one company is affected, the whole market becomes affected. That is why having a team of professional becomes essential in any financial services company to protect their data well.
2. Cost containment:
After the global crisis in 2008, the financial services companies were deeply affected and up till now they still have to deal with the consequences of it.
Since 2008, problems like the slow growth of the market, the low margin and highly-regulated environment produced by the laws the governments have taken to control the crisis have become the reality of the companies.
In such atmosphere, reducing costs seems like a solution. Any costs that are important are being cut. Regulations make it clear where to spend money and what for. Clients want their financial needs to be met with the lowest amount of money; when you have to pay for unnecessary services, you will take this money as fees from the clients so your service will be expensive.
3. The modern competition:
Financial technology is dominating the financial services industry. Technology changes the way the people pay, save and even think about money. If your company does not have a website to represent it, the clients will not even know about your existence while searching online for financial services companies; that’s a simple example.
The new competitors depend on technology completely; they may not have enough experience but they will earn the clients’ trust by insuring that everything will be technical and safe. The new technology also allows the companies to make low-cost offers.
Introducing the latest technology to your company will have a lot of benefits for your business so make a budget for it; you will earn more money than this budget.
The financial services companies have to deal with these challenges constantly. When you deal with a challenge properly, your company is earning more clients and more money. If you didn’t deal with every challenge, it may destroy your business.