Cleared for takeoff: Five megatrends that will change financial services
Aim: To provide insights into how disruptive innovations are reshaping financial services now and could reshape in the future if conditions are right.
Outcome: At the end of this module the reader will understand:
- how disruptive innovations will continue to reshape the financial service business of today; and
- the potential effects of those innovations on the overall financial services ecosystem.
Abstract: Recently, Deloitte Consulting and the World Economic Forum undertook a joint study on the future of financial services. Using that research, this article looks at how clusters of innovation are affecting business in primary accounts, payments, capital markets, investment management and insurance. The different ways those innovations could develop are considered. The research indicates benefits of scale will erode, the universal banking model will become unbundled, and new sources of capital will appear. The disruption will likely be felt first in banking, but hardest in insurance.