Expect a new financial services playing field to emerge over the next 10 years, according to the Intuit 2020 Report: The Future of Financial Services.
This research examines four key trend areas that will transform the financial services industry over the next decade:
1. A new playing field for financial services. Regulatory pressures will increase and competition will grow from both traditional competitors and new entrants.
These forces will lead financial institutions to explore new business models, collaboration and partnerships, and increased consolidation.
2. Shifting segments, changing markets. Consumer demand for financial services will increase across all age groups.
The two largest contingents—aging baby boomers and generation Y—will demonstrate particularly acute shifts in their needs and types of products and services they purchase.
Competition to serve midmarket businesses will intensify, slimming financial institution margins.
However, the overall small business sector will continue expanding, with the number of small and personal businesses increasing by more than seven million over the next decade.
Most of this growth will come from micro and personal businesses (less than $1 million in revenue), creating opportunities for financial institutions that can serve these firms efficiently.
3. The new customer connection. Technology’s role in the customer experience will take center stage.
With increased cost pressures and a growing demand for flexibility, accessibility, and personalization, financial services organizations will accelerate their use of technology to meet customer needs.
Cloud computing platforms and applications will combine with advanced analytical tools, ever-larger data sets, and social and mobile computing to reshape how the financial services industry designs and delivers value-added products and services to consumers.
4. Reputation and relationships rule. Institutions that use technology to serve up useful customer insights will win.
Over the next decade, the financial service industry will shift its focus from transactions to customized value-added services.
Through a combination of both virtual and brick-and-mortar branches, financial institutions will develop stronger, more personal relationships with businesses and consumers, helping them manage risk, build wealth, plan for retirement, and anticipate health care expenses.
Intuit 2020: The Future of Financial Services builds on the data, trends, and forecasts in the Intuit 2020 report, which identifies 20 emerging trends and shifts that will shape business and society over the next decade.
Access the report here [pdf].