Trends in Financial Services for 2017
The outlook for finances is not predictable. In the year 2017, will financial services experience fair weather or hit by storms? Staying ahead in the world of financial services is a challenge in so many ways. Read on and look at the various aspects of financial services and what awaits them in 2017:
- Securities and banking. The market’s initial reaction to the unexpected outcome of the elections in the U.S. showed evidence of better prospects for capital market firms and banks in 2017. Changes in structures will continue in the form of investments and operating models in technologies for competitiveness and efficiencies.
- Real estate for businesses. Real estate is greatly influenced by quick demographic shifts and advancements in technology. These include varied patterns in the lifestyles of millennials, growing urbanization, and the long life of Baby Boomers. Furthermore, regulatory and macroeconomic developments continue to influence profitability.
- Investment management. Many major trends will possibly impact the industry of investment management in 2017. There will be shifts in consumer behavior as millennials become a greater power in investments; robotic process automation; other technologies; and more regulations from the SEC (Securities and Exchange Commission).
- Bigger Data. Big data will continue to grow. All financial companies have realized their potential. Everyone if taking videos and photos, clicking, chatting, and emailing more than ever. Companies are now recognizing the fact that data is very valuable, so they have taken the steps to store it at every opportunity. Access to new forms of technology and access to the appropriate skill sets are vital. The data scientists’ supply and demand will move toward the equilibrium. This allows the application of advanced techniques in fraud and banking. Because of this, real time alerting and analysis are slowly becoming more efficient.
- Blockchain. Blockchain is the hottest subject of discussion in Fintech. Based on a report made by the World Economic Forum, ledger technology can possibly reshape financial services by means of the following:
- Driving efficiency and simplicity through the establishment of new financial services processes and infrastructure.
- Questioning and transforming traditional orthodoxies in present business models.
- Establishing the foundation of the next generation infrastructure of financial services in conjunction with emerging and existing technologies.
What Blockchain represents cannot be ignored. Year 2017is considered the start of what is called the Blockchain revolution. This revolution drives the defining of the future shape and the transformation of financial services.
- Slowly climb down or Drop down. In the world of financial institutions, huge data initiatives revolve around the enhancement of customer experiences or intelligence—thus, meeting objectives and reducing risks. This occurrence will not change. The big Tier-1 financial firms will continue to tackle them. Smaller and mid-tier firms (regional banks, asset management, brokerage, advisors, etc.) can adopt data platforms that are secure and new. These will help leapfrog and match architectural markets, accelerating their strategic technology, growth, and profitability. This elevated flexibility and speed has the capability of releasing a brand-new wave of disruptive players in 2017.
Financial services will once again trek a challenging path in 2017. Just keep an eye on your chosen financial services, so that you can be updated about their performances.