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NewswireTODAY - /newswire/ -
London, United Kingdom, 2016/11/24 - Cloud-based infrastructure and virtual data enhancement are transforming the financial industry, finds Frost & Sullivan’s Visionary Innovation team - Frost.com.
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The financial services industry is on the brink of disruption as widening technology use challenges existing products, services and costs. Stakeholders across banking, insurance, funding, lending, fintech, payments, business and retail are reviewing processes to align with transformational social and technological trends. For instance, the demography of customers is now dominated by younger investors who are more reliant on digital channels. Similarly, automation is drastically reducing human effort and decreasing cost to customers, compelling newer fee structures across the board.
“Banks are being set up digitally with an omnipresence through the cloud. Average individual investment sizes are shrinking, creating a new segment of micro-investments. Service providers are collecting more data about their customers in order to monetize it or gain insights on how to build and modify their products for customers,” explained Frost & Sullivan Visionary Innovation Group Research Analyst Yash Mukherjee. “Essentially, automation is changing the role of institutions in the industry from transaction processing to an advisory one.”
Future of Financial Services is part of Frost & Sullivan’s Visionary Innovation (Mega Trends) Growth Partnership Service program, which examines the Mega Trends shaping the world, highlighting macro-to-micro implications on business and scociety. The subscription provides insights on various topics such as Future of Logistics, Future of Artificial Intellignece, Analysis of BREXIT and its implications to industries, economies and societies and Megatrends in Russia among others.
“With funding and lending channels moving from traditional wealth management institutions to more open peer-to-peer platforms, flexibility and customizability will be the key selling points for future service providers,” said Mukherjee.
As such, the evolution of financial services will focus on empowering customers to choose and customise the services they receive or the products they purchase. Some significant market trends expected to emerge by 2025 include:
• Cloud-based, software-as-a-service infrastructure model;
• Robot advisors that do away with processing fees for customers;
• Use of distributed ledger technology, Blockchain, to revolutionize transaction authentication and speed;
• Big Data analytics driving new Insurtech products for progressive customers;
• Pervasive use of convenient biometric authentication;
• Strong investment in learning machines applications and predictive analytics.
About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
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anna.zanchi[.]frost.com 
