Disruption and digital transformation in finance are inevitable. Our latest research looks at how leadership and organisational culture can make or break digitalisation efforts.
For financial services disruption is the new normal
Disruption is the new normal in the financial services sector. The global FinTech market is expected to grow at a rate of 25% annually and InsurTechs, the challengers in the insurance space, are set to almost double their revenue by 2025. Tech giants, such as Amazon, Apple, Google and Facebook are also rapidly disrupting the financial services space.
There are several factors driving FinTech success:
- New tech, like AI and blockchain, are separating the winners from the losers.
- Ultra-personalised tech services that FinTechs offer are driving demand.
- Digital payments are becoming increasingly popular, as the move towards a cashless society is fast-tracked by the Covid-19 pandemic.
Covid-19 widens the Digital Divide
Covid-19 pandemic has accelerated the disruption, and customers now increasingly expect competent online and mobile services, fast and secure access to funds, protection, assurance, and financial information. Ernst and Young survey shows that for over 50% of customers factors such as greater flexibility, eagerness of companies to provide support to individuals and the community, as well as better transparency, will impact their future purchasing decisions.