There’s no denying that technology has been the catalyst for disruption in the financial services industry, particularly in the past decade or so.
How financial services should use market intelligence
From ETFs, to robo-advisors, to Venmo pushing banks to develop Zelle, technological innovation is an urgent area for banks and other financial service organizations to monitor, to contextualize, and to integrate into organizational strategies. Examples of why it’s important include:
- Technology will change market segmentation
- Technology will impact how they serve customers
- Technology will be leveraged to operate more efficiently
- Technology has changed – and will keep changing – the competitive landscape, both for traditional competitors and new entrants
An example of industry change
Goldman Sachs, in recovering from the financial crisis of 2008, now employs one-third of its workforce as IT-related engineers. Following on from this, it launched an online lending service in the US in 2016, which is now launching in the UK.
Despite evidence of it trying to reposition itself as a tech company as much as – if not more so than – a bank, there are suggestions that financial services technology has already moved on. As FinTech keeps evolving, we’re also moving into the age of RegTech – regulatory technology. This was reflected in the Financial Times’ second annual Future of Fintech Awards, where the majority of nominations related to innovation were based in regulatory, rather than financial practices.
Market intelligence in a changing landscape
This shouldn’t be taken as a sign that Goldman Sachs is about to disappear, but it is telling of where market intelligence could and should be put to better use.
Organizations are overwhelmed with data. Regulations are adapting to keep up with the type of personal data transferred by digital means, and to make sure financial institutions act ethically in that context.
This presents three questions for those working in the industry:
- Are you keeping on top of these trends, as they impact your customers and their expectations?
- Do you have a rigorous market intelligence program in place, to stay on top of these pressing issues?
- How are you and your organization integrating this intelligence into your strategies and tactics?
These questions need to be raised with the relevant strategic decision-makers in your organization, asking if and how your current market intelligence function is serving these considerations, and investigating whether the intelligence being obtained is being used to effectively manage these changes.
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This article was originally published on ShiftCentral, now part of LAC Group.