The transformation of the Banking Finance Insurance sector
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The Banking, Finance and Insurance sector occupies a major place in the economy. The maturity of the market, the financial environment and regulatory pressure are forcing its players to adapt their organisations, their products and their relationships with their customers. The spread of new technologies and the arrival of innovative players are having an impact on the entire financial sector.
Challenged by the arrival of new entrants from “InsurTech” and “FinTech”, the sector’s incumbents must develop new business models.
A necessary digital transformation
For the banking and insurance sectors, Big Data and artificial intelligence (AI) are driving forces of digital transformation, likely to impact the entire value chain. Organisations are adopting tools based on this technology, with applications in the field of customer relations (chatbot, analysis of supporting documents, automated advice, etc.), in that of compliance (fight against money laundering, fraud, etc.) and in that of risk analysis, or even predictive marketing solutions in order to build customer loyalty, the implementation of robots to increase productivity, the use of Blockchain to secure transactions, etc.
An accelerated convergence of the banking and insurance sectors
The banking sector has developed a range of services related to the management of a current account or credit, such as insurance for means of payment (loss of card or chequebook), loss of income (unemployment, accident, etc.), and also for common products such as home or car insurance. As for the insurance sector, it now offers banking services. Bankinsurance is a sector that is still in the midst of change with banks taking control of insurance networks and vice versa. These mergers and acquisitions are accompanied by the appearance of new financial groups.
A new phase has begun for the sector: the possible rise in interest rates, the return of inflation, a changing economic context and a stricter regulatory framework (Basel II, Basel III, IFRS9, RGPD, SEPA), are forcing it to review its habits and to carry out industrial transformations with great speed. Faced with the reorganisation of competition, the protagonists of this market are encouraged to reinforce the use of new technologies and to adopt new business models integrating innovative players, via partnerships or acquisitions, with a view to building loyalty with the customer. The new competition from FinTech and neo-banks encourages customer versatility and cost pressure. Based on the quality of flows and simplicity of use, its main effect has been to make customers more demanding in terms of interaction and simplicity. Banks must therefore capitalise on technology and digital to support new uses, develop new services and provide a fluid and intuitive customer experience with the use of mobile apps while protecting bank data.
In the insurance secteurs, the relationship between customers and insurers has also definitely changed. The very structure of the market has been modified with a phenomenon of concentration of the historical players, tending towards a globalisation of the offer. The era of the single insurer is over. The difference between the traditional markets (Property & Casualty, Health, Personal Protection) is shrinking to make way for a range of “tailor-made” services. And insurtechs are seen more as partners or niche competitors.
2020 and 2021 will have been exceptional years, synonymous with strong turbulence in the financial markets and for the organisations of asset management companies. Increasing transparency requirements, rising client expectations and the high priority given to risk management have forced players to quickly invent a new operating model.
The asset management industry is facing these changes with confidence:
Investor demand and the increased requirements of regulators in terms of sustainable finance are forcing asset managers to rethink their offerings, processes and data management. The work around responsible investment has only just begun. Technological innovations continue to spread in financial services where Cloud Computing and Machine Learning are gaining momentum. Audit and financial advisory services contribute to strengthening transparency and creating the conditions for confidence in the economy and financial markets, thereby promoting sustainable growth for companies.
Priorities for maintaining growth in Banking/Insurance
- The need to impose purely digital models
- The reconciliation of digital and human requirements in terms of advice: customers increasingly expect their bankers or insurers to be proactive, to provide advice and to offer good tips
- The acceleration of its digital adaptation
- Cybersecurity in a sector of increased teleworking and hacking that targets financial players
- The strong acceleration of the digital transformation around customer relations
- Financing and insurance to support the transformation of economic sectors: Industry 4.0, mobility, connected cars, etc., taking into account environmental expectations
- Mastery of technologies to develop innovation: Appropriation of the Cloud and its contributions to strengthen its resilience, the security of its systems and imagine its future thanks to the exploitation of data, particularly in real time, and by infusing it with AI
- The ability to retain and attract talents: employer brand, CSR strategy, management: resources vs. objectives, etc., are all points to be taken into account in order to be attractive and to control its investments in terms of HR
- The ability to take advantage of the Fintech and Insurtech ecosystem for business growth
Our interim managers in France and abroad
Transformation goes beyond compliance issues and aims at efficiency and synergies to serve customers and profitability. The organisation of information systems (IS) is a central concern in order to master this transformation and the proper management of the resulting projects is an absolute priority. This digital transformation also implies a strong evolution of skills, the management of processes for a more transverse organisation and a cultural change.
To meet all these transformation challenges, you need experienced experts with real business knowledge: IS, Compliance, Risk management, Market finance covering a wide range of functions (General Management, Information Systems Directors, Finance, Financial Directors, Tax specialists, Financial Engineering specialists, Market Operations Analysts, Human Resources Directors, Legal, etc.) and benefiting from strong know-how in change management.