# The meta trends driving positive change for Financial Services Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-02 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Financial Services Transformation Amidst COVID-19 Challenges Meta Description: Learn how financial institutions are adapting to the new digital landscape, partnership trends, and challenges post-COVID-19 for a roadmap to recovery and URL: https://financedigest.com/the-meta-trends-driving-positive-change-for-financial-serviceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img8619-866-sbi-300726407-1736838086791-compressed.jpg) _By_ **_Suzi Bentley-Tanner,_** _Strategy Director at digital and data consultancy Engine Transformation_ The imperative for change within financial services has never been greater. Organisations have had to rapidly digitise and automate in response to the pandemic, in addition to addressing increasing demands in [consumer behaviour](https://www.financedigest.com/gumgum-powers-into-europe-as-new-research-shows-consumers-reject-behavioural-ads.html "GumGum Powers into Europe as New Research Shows Consumers Reject Behavioural Ads"), continued erosion of trust, and an increase in disruption from unlikely sources. These [changes are leading to a rise in traditional banks partnering with digital firms](https://www.financedigest.com/uk-watchdog-warns-crypto-firms-to-prepare-for-advertising-rule-change.html "UK watchdog warns crypto firms to prepare for advertising rule change") to drive down operational costs, as well as a decrease in branch networks, and an overall drive towards leaner organisations. Established [FinTechs who have had to scale must](https://www.financedigest.com/fintechs-must-remove-security-and-compliance-friction-to-unlock-new-growth.html "Fintechs Must Remove Security and Compliance Friction to Unlock New Growth") now consider how to behave like grown-ups, with well-articulated customer propositions, and a seamless experience. A roadmap for [recovery and reinvention in the wake of COVID-19](https://www.financedigest.com/covid-19-recovery-tips-for-2021.html "COVID-19 Recovery tips for 2021") is now required to address recent trends. Looking at these [trends in a bit more detail](https://www.financedigest.com/fish-feed-market-detailed-survey-on-key-trends-leading-players-revolutionary-opportunities-2030.html "Fish Feed Market – DETAILED SURVEY ON KEY TRENDS, LEADING PLAYERS & REVOLUTIONARY OPPORTUNITIES 2030"), from a customer perspective, expectations are changing, fast. The expansion of big data, social media, and the ease with which you can find or buy nearly anything you need, means that people are accustomed to rapid, personalised experiences, and those expectations extend to [financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud"). In addition, COVID has forced people into different behaviours which are unlikely to be reversed, including online shopping, contactless [payments and digital banking](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns"). Although it was evident before COVID, [financial anxiety and subsequent re-appraisal of risk](https://www.financedigest.com/financial-risks-of-climate-change-overplayed-senior-hsbc-banker-says.html "Financial risks of climate change overplayed, senior HSBC banker says") have been accentuated in recent months. Edelman’s Trust Barometer places [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") and the end of the pack, with COVID driving a further 5% decrease from 2020 to 2021. The [financial services](https://www.financedigest.com/what-can-we-learn-from-financial-services-security.html "What can we Learn from Financial Services Security?") industry is also witnessing a continued erosion of trust in authority and institutions seen as part of the establishment. This isn’t an area where [financial services](https://www.financedigest.com/how-big-data-is-sending-shockwaves-through-the-financial-services-sector.html "How big data is sending shockwaves through the financial services sector") has helped itself, from the financial crisis through to JP Morgan bankrolling the European Super League. Companies outside of the [financial services sector are also seeking new arenas to drive](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") growth, accrue data and leverage their existing assets. This represents a real [threat to traditional organisations](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023"), who are less able to connect into more tangible (and perhaps more appreciated) service offers. Walmart may be in the spotlight for its “ [Hazel by Walmart](https://www.paymentssource.com/articles/walmart-files-for-trademark-for-fintech-unit-hazel-by-walmart)” financial services trademark application, but the big-box retailer is not alone, as non-financial companies with a strong e-commerce operation are adding banking services for their large customer bases. Advancements in [payment technology and pandemic-era trends](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016") toward automated commerce provides these firms with the ability to register and store credentials for hundreds of millions of users internationally. These [trends present several challenges](https://www.financedigest.com/d-mannose-market-opportunities-trends-drivers-challenges-forecast-by-2025-transparency-market-research.html "D-Mannose Market Opportunities, Trends, Drivers, Challenges & Forecast By 2025: Transparency Market Research"). For more traditional organisations, there is an increased risk of commoditisation, especially as the [role for physical banks](https://www.financedigest.com/the-future-role-of-bank-branches.html "The Future Role of Bank Branches") declines. Rigid, institutionalised thinking is no longer fit for purpose. But hamstrung by legacy technology and late to the relevance and personalisation party means that they are finding it difficult to [move beyond](https://www.financedigest.com/the-high-fiber-feed-market-to-move-beyond-the-monotony.html "The High Fiber Feed Market To Move Beyond The Monotony") providing purely economic value to align commercial priorities with societal contribution. Established [FinTechs who have had to scale rapidly must](https://www.financedigest.com/five-steps-the-uk-must-take-to-keep-its-fintech-crown.html "Five steps the UK must take to keep its Fintech crown") also take stock. Rather than sprightly ingenues, they now consider how to behave like grown-ups, shifting from a [product focus to a more marketing](https://www.financedigest.com/the-microalgae-based-product-market-to-grow-based-on-instilled-innovation.html "The Microalgae Based Product Market To Grow Based On Instilled Innovation") driven organisation, by investing in well-articulated customer propositions, and a seamless experience. Where to begin? Many transformation programmes over-index on technology, but we believe that successful change requires awareness and action [across a number of interdependent elements and considers them as a formula specific to each organisation and project](https://www.financedigest.com/cordant-projects-to-develop-eleven-moxy-hotels-across-uk.html "Cordant Projects to develop Eleven Moxy Hotels across UK") context. Each formula is unique, leveraging unique assets and advantage, and [must be balanced in terms of focus and investment](https://www.financedigest.com/private-equity-firms-hungry-for-investment-opportunities-but-business-owners-must-be-cautious-2.html "Private equity firms hungry for investment opportunities, but business owners must be cautious"). Transformational elements include: - Brand: how strong, and well-articulated your brand is, and how well-aligned your brand ambition is to the [experience you deliver](https://www.financedigest.com/how-partnerships-fuel-fintech-innovation-and-help-banks-deliver-a-better-customer-experience.html "How Partnerships Fuel Fintech Innovation and Help Banks Deliver a Better Customer Experience") - Culture and organisation: how ‘transformation ready’ you are, and the extent to which you can break free from hierarchies and silos - Customer: the quality of intelligence and insight you have about your customers, and the value they represent - Data: how accurate it is, how readily you can access it and what capabilities you possess to [turn data into action and competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE") - Strategy: the degree to which your strategy is anchored in your advantage and assets, and the extent to which you stay true to a North Star - Technology: adept at agile and adaptable delivery, and in deploying technology to [drive additional revenues](https://www.financedigest.com/tomtom-raises-2023-revenue-outlook-as-automotive-drives-q4-beat.html "TomTom raises 2023 revenue outlook as automotive drives Q4 beat") or efficiencies The key is to evaluate the current state of play across each of these elements and determine where to focus and invest to deliver against a clear North Star. If you consider the industry as a whole, there are challenges across each of these dimensions, from an increased [risk of commoditisation and brand invisibility as the role of physical banks](https://www.financedigest.com/governments-and-central-banks-risk-inflation-bank-of-england-has-done-its-bit-now-the-politicians-turn.html "Governments and central banks risk inflation, Bank of England has done its bit, now the politicians’ turn") decline, to the need to be less authoritarian, and more egalitarian and agile. Transformation programmes [need to focus on addressing](https://www.financedigest.com/if-the-nation-backs-fintech-we-need-to-address-a-few-things.html "If the nation backs FinTech, we need to address a few things") these head on, and make a number of shifts; from ‘on the high street’ to ‘in the pocket’, from traditional hierarchies towards ‘ideas and innovation first’ models, encouraging more agile working practices and embracing ‘Test & Learn’. Organisations must also become more proactive and develop predictive solutions to improve customer wellbeing, [financially and beyond](https://www.financedigest.com/beyond-the-hype-metaverse-and-the-future-of-financial-services.html "Beyond the hype – metaverse and the future of financial services "), using data to deliver better customer outcomes aligned to purpose. Finally, they need to move from product focused to customer value-driven thinking, responding more quickly to [changing market conditions and individual customer](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") needs, and leveraging technology to humanise relationships with customers and staff alike. If [financial services](https://www.financedigest.com/boom-or-bust-how-the-financial-services-sector-is-coping.html " Boom or Bust: how the financial services sector is coping") institutions are able to successfully transform, they will be able to  future-proof their businesses and generate sustainable growth. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---