What’s in Store for Investment Banks Through 2022?

MARKUS BOEHME | March 28, 2019

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Accenture’s latest analysis, our Capital Markets Vision 2022, shows a highly diverse picture of investment bank performance and outlook. Yes, the top four investment banks (all generating above $20bn in revenue and all US domiciled) are creating significant economic profits and thus shareholder value. And yes, profitable niches do exist further down the scale for banks in the $1-5 billion in revenue range. But the rest? The truth is that most of them are failing to generate their cost of capital. And the plot is thickening – with most large players having now reported FY18 results, we are seeing exactly the same pattern!

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OTHER ARTICLES

APIs in Fintech

Article | February 10, 2020

The banking and finance industry have grown and changed in recent years. Two of the factors driving that growth and change have been the rise of financial technology (fintech) companies or programs and the use of application programming interfaces (APIs). Because of APIs and fintech, people can now do incredible things with their money from the comfort of their homes that once required them to visit a local bank or brokerage.

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7 FinTech Challenges and Ways to Overcome Them

Article | February 10, 2020

2020 has been a challenging year for all industries. As COVID-19 continues to create uncertainty, many FinTech brands are under stress for a number of reasons. However, FinTech brands can use this opportunity to build their reputation and emerge as a substantial entity after the crisis has passed. Many FinTech organizations are putting in their thoughts on big ideas and innovative digital offerings that meet customer demand for a frictionless and seamless banking experience. This article aims to list down the challenges faced by FinTech brands and effective ways to resolve them: Challenges Faced by FinTech Brands in Generating Demand In this unprecedented time, lead generation is on high priority to acquiring new customers. The pressure is to get on board with working remotely, adapting to new challenges, changes, and dealing with customers having urgent & new requirements. FinTech companies have faced unique challenges over the past year. They are using complex technologies to develop better products & services for businesses. Replacing traditional methods to improve financial services need strategic planning, technological advancement, and original content marketing ideas to survive in the digital age. Read on to find out the challenges faced by FinTech brands in generating demand for their solutions. Impact of Covid-19 COVID-19 continues to create uncertainty due to the widespread lockdown. Many FinTech brands are under the stress of counting recent losses, cost-effectiveness, and rethinking their offerings to adapt them to changing needs. The banking & finance industries are now shifting from response to recovery. They are now investing in introducing new FinTech apps for the post-pandemic world. According to a recent survey, almost 82% of the citizens don't want to visit their banks and try digital apps to carry out financial transactions. FinTech brands are grabbing this opportunity to reach out to a new demographics by testing and adding new product range. Today, popular FinTech apps include mobile banking, e-wallets, contactless payments, international money transfer, retail banking, stock trading, FinTech loan app, InsurTech, etc. Go mobile Go digital. As a FinTech brand develops innovative solutions to be used during the pandemic, they also need to figure out ways to promote these products and services to reach their target audience. You are getting acquainted with various social media platforms, and understanding your target audience will help you reach wider. Identifying the top social media platform that works best for your product and service through content marketing will boost your customer base, reduce churn, and attract potential customers. Other functional content marketing solutions that you can think of includes web – content syndication, social media, mobile app – advertisements, and brand awareness content. Inefficiency to maintain a healthy lead pipeline Several FinTech brands are reassessing their approach, their budget, goals, and their offering. Those quickest to adapt to this change will lead the market and continue to grow. According to a research report, B2B specialists make 48% purchases online, up from 38% before the COVID-19 outbreak; this trend is likely to increase. FinTech companies need to generate more new leads than ever to maintain a healthy lead pipeline. To do so, they need to be where their audience is. • Finding the best social media platform for your industry • Rethinking events – Online & Offline • Exploring online opportunities – Webinars/Podcasts/Live Streaming/ Live Q&A/Online Sessions/ Live Feeds • Publish demo videos Building trust One of the most significant issues and struggles with a FinTech brand is to gain the trust of their consumers. Consumers usually select financial service providers as they are trusted by their families for generations. These financial brands should be able to handle issues such as security, confidentiality, and digital fraud. The brand should also comply with the latest financial regulations that need to be communicated. Social media is an ideal platform for brands to connect with their existing and potential customers. To build trust & loyalty between the company and the end-user, brands must focus on helping their customers rather than selling. Inadequate tech stacks to work remotely The inability to work remotely gave rise to new entrepreneurs with knowledge of finance who developed innovative solutions to help FinTech brands connect remotely. Another essential aspect that has evolved this industry is remodeling the user interface and customer experience. FinTech brands are largely coming out with innovative solutions that can help with: - Financial close - More visibility and transparency to financial transactions - Centralized data - Cloud support Cybersecurity Cybersecurity is a common problem across industries. With the advent of advanced technologies rises the need to develop stronger security. Considering the threat posed by cybercriminals and fraudsters, the financial system needs to handle this risk smartly. All the financial information remains sensitive, whether it's your social security number, card number, PINs, or password. With the growing number of smartphone users, FinTech becomes cheaper and easy to use. The process and services that were once monopolized by the banking sector are now available for all, helping develop innovative solutions, lower operating costs, and improve financial organizations' efficiency. Reaching Millennials FinTech brands should target millennials. They are fueling the market among money transfer applications and personal investment applications. Financial brands need to focus on financial management, lending, financing, and insurance applications. According to a report, 33% of millennials believe they won't need a bank at all in 5 years. Expanding FinTech press/media The increasing use of financial technology has given rise to a number of media houses covering them. Over the year, dozens of FinTech focused media sites, podcasts, and newsletters have been launched. Several authoritative publications have hired beat writers to pump up stories on trending topics and subject interest. Final Thoughts The FinTech market is growing in numbers, and the industry is heading towards the trillion-dollar industry. To grow as a FinTech brand, you need to ensure that you are better than your competitors. These challenges are temporary and can be overcome through practical approaches and technological advancements. While the challenges in deploying a FinTech firm continues, we have given a clearer perspective on how to overcome them in this blog. Overall, digital transformation for customer satisfaction is what is necessary. FAQs Q1. What risks are associated with FinTech products and/or services? A1. Cybersecurity, consumer data privacy & security, consumer data rights, online frauds and scams; cross-border transactions, anti-money laundering and countering terrorist financing; and digital identity risk are the key factors in the FinTech market. Q2. What are the benefits of FinTech? A2. FinTech has helped us drive positive change in the traditional financial services and foster innovation by creating products and service that benefits customers and small and big enterprises. Some of the benefits of FinTech products and services include convenience, digital resolutions, hassle-free practices, flexibility, high rate of approval, upgrade payment systems, customer services, and revenue, user-centric, transparency, and many more. Q3. What are the challenges for the financial services industry? A3. As mentioned in the blog, there are 7 key challenges faced by the FinTech Market they are: Pandemic situation Inefficiency to maintain a healthy lead pipeline Building trust Inadequate tech stacks to work remotely Cybersecurity Reaching Millennials Need to expand FinTech press/media { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What risks are associated with FinTech products and/or services?", "acceptedAnswer": { "@type": "Answer", "text": "Cybersecurity, consumer data privacy & security, consumer data rights, online frauds and scams; cross-border transactions, anti-money laundering and countering terrorist financing; and digital identity risk are the key factors in the FinTech market." } },{ "@type": "Question", "name": "What are the benefits of FinTech?", "acceptedAnswer": { "@type": "Answer", "text": "FinTech has helped us drive positive change in the traditional financial services and foster innovation by creating products and service that benefits customers and small and big enterprises. Some of the benefits of FinTech products and services include convenience, digital resolutions, hassle-free practices, flexibility, high rate of approval, upgrade payment systems, customer services, and revenue, user-centric, transparency, and many more." } },{ "@type": "Question", "name": "What are the challenges for the financial services industry?", "acceptedAnswer": { "@type": "Answer", "text": "As mentioned in the blog, there are 7 key challenges faced by the FinTech Market they are: Pandemic situation Inefficiency to maintain a healthy lead pipeline Building trust Inadequate tech stacks to work remotely Cybersecurity Reaching Millennials Need to expand FinTech press/media" } }] }

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SME Challenges in Cross Border payments

Article | February 10, 2020

The economic scale of the SME market is substantial, contributing £2.0 trillion (52%) a year to the UK economy alone and growing. But for SMEs wanting to trade internationally, they’re met with highly complex infrastructure and a myriad of lenders, brokers, FIs, processes and systems in place that lack sufficient integration or none at all.

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Applied Data Science in Fintech

Article | February 10, 2020

Under the supervision of Dr. Mario Gillrich and Maria Pelli, this course explores how new entrants in banking and finance are leveraging new technologies and methodologies to help traditional banks, their corporate clients and consumers use data and algorithms to better manage their financial operations and processes.

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Spotlight

Lexington Law Firm

Lexington Law is your source for professional credit repair services. Armed with 20 years of credit repair experience, our staff has helped over a half-million clients with their credit repair needs. Our services utilize tools designed to help you take control of your credit future. The number of items removed represents the combined removals of all clients for all three credit bureaus that occur during the client’s representation. For example, if a single questionable negative item is removed from all three reports, it is counted as three separate removals.

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