How new technologies are changing the financial industry
innosabi Best Practices Report: 5 steps for more customer focus and innovation in Finance - Download the Whitepaper now.
The finance and insurance industry has dodged disruptive innovations for a long time. But now, like many others, it faces a major change: digitization. Although the digital age only started a few years ago, the speed with which new technologies are created and outdated is enormous. Digitization is creating useful trends that have made life easier for both customers and businesses, as well as many challenges associated with the accelerating pace of new digital innovations. But it is not only the industry that is changing, but also society and, with it, consumer expectations.
Changes driven by new inventions or technological possibilities are a familiar concept in the history of the economy. But this has always been accompanied by a change in society, professions and industries. With the invention of coinage came the profession of the mint master, with banks came bankers, loans, and interest. But what about digitization? As the term “digitization” implies, everything becomes digital. The Internet, computers and a globally networked world are opening up new opportunities in all sectors. For the financial industry, this means first of all dealing with blockchain, cryptocurrencies and smart contracts. But some companies are much more likely to reach their limits because, according to PwC, the majority of them are not up-to-date technologically. And so the discrepancy with clients' requirements continues to grow. A society that lives ever faster and more digitally also translates this into the expectations of banks and insurance companies. FinTechs uses the fact that long-established companies cannot react so quickly to changing customer expectations to fill gaps in the market. One of the most important factors for the success of organizations is the rapid adoption of new technologies.
Especially for established finance and insurance companies that have emerged in an offline world, the transformation to a digital enterprise is challenging and challenging. Mainly regarding the size and solid structures, fast changes are impossible. In contrast, FinTechs have emerged in a digital world and are competing with market leaders with new business models. Their advantage lies in their flexibility to react to new things. If you compare FinTechs with major corporations, they look a lot like a sailboat compared to a cruise ship. As a large company, this means staying up to date and implementing innovations.
How can this gap between the current situation and the possibilities of the future be closed? How do banks and insurance companies manage to jump on the bandwagon? With speed and flexibility. In the financial sector, which is subject to many regulations, this is, of course, a challenge. Therefore, it is central for organizations to design processes flexible and to accelerate product development. In this way, it is possible to react directly to new requirements or needs. In this way, companies change in line with customer needs — and achieve genuine customer centricity.
In Agile Innovation in Finance and Insurance, you will learn how innosabi customers in the financial sector are already implementing customer proximity and how it supports Agile Innovation in doing so.
