Financial services are the lifeline of a nation’s economy, providing free flow of capital and market liquidity. People are able to make big purchases and save for the future, and businesses can better manage risk when this sector is robust.
The main types of financial services are savings, credit facilities, investment and insurance. Savings include money in bank accounts, mutual funds and pension schemes. Credit facilities include loans, mortgages and credit cards. Investment and insurance include stocks, bonds, and real estate. Insurance includes protection against death or injury (e.g. health, auto, home, or life insurance), and against property loss or damage (e.g. fire, earthquake or flood insurance).
A healthy finance sector enables the tertiary sector to grow. It also leads to higher productivity and an overall boost in economic growth, which benefits everyone.
In this environment of sharp market and regulatory pressures, financial services organizations are striving to become more innovative and entrepreneurial. They want to build stronger relationships with customers and provide personalized financial products that meet their needs.
But while the path to a brighter financial future is clearer than ever, the challenges are more complex than ever. 2023 will be a year when it’s important for financial services leaders to understand and embrace the new normal, one in which profits and purpose are inextricably linked. To do so, they will need to build a culture that’s rooted in transparency and trust. And they will need to reshape their organization’s capabilities to do so.