The Financial Services industry may see higher disruptive innovation in the mid-term. This will provide new challenges that executives need to stay ahead of. These will range from Fin-Tech, IOT(The Internet of Things), Cyber Risk and changing demographics of wealth.Growth rates, Fund flows, Investment and exit opportunities, Geo politics, Producing and consuming-countries, savings rates, interest rates, security and insurance penetrations, micro finance are only-some of the myriad factors determining this most complex sector.
The sector will continue to look at Analytic, Disruptive opportunities, enriched customer experiences key areas to lead growth and consolidation.
The number of banking and non-banking companies and models are set to rise particularly in the-emerging and undeserved markets.
There will be increasing linkages in the global markets with companies entering newer markets.Reform programs in countries will allow for new paradigms of opportunities. The challenges will be-around sustainability, growth and profitability.
The Insurance sector in all the emerging markets has very low penetration. In India it is under 3%.This is a sector awaiting reform, infrastructure, change in customer behaviour, products to move up the adopting and penetration rates. It can be a substantial role player for change in quality of life,business and asset security and employment