The finance service industry happens to be a very vast sector that involves all money managing organizations like insurance companies, credit card companies, and investment funds etc., which provide the financial or economic services in the economy. The organized history of financial services dates back to probably the Gramm-Leach-Bliley act of late 1920s which allowed various companies operating in the U.S. at that time to merge as one finance industry.
This type of business is handled by the companies in two ways. The first is when a bank would buy an insurance company or an investment bank keeping the brands of the existing firm it will add acquisitions to its holdings to diversify the earnings. The second approach would be when a bank opens its own brokerage section or insurance section and try to sell its services to its existing services with incentives.
The history of financial serviceshas evolved over the ages. In the current situation it needs steady growth in the continuously expanding market. More than 93% executives interviewed in Delloite and Touche report noted that there firms are not operating on global integrated patterns. This report also laid emphasis that modern financial firms need to move from the already matured markets and should start in blooming new markets like the U.S.A based firms can look towards the Japanese and African markets.
Some business journals have discussed about the significant changes in the finance industry and the firms that are trying innovative ways including new technologies and customer participation for example the introduction of online banking services.
The customer is the center of all the strategies formulated by finance services firms it is very important to create new and better services to bring in more potential customers and maintain the existing world. In this fast paced world generating mobile money should be the top priority of the financial firms. Like speed play where you don’t have to swipe the card to pay all you need to do is just put it near the payment processor and it is done, mobile money will be expansion payment and money transfers without the need of any card.
The world bank has noted that an increase in the use of e-technology is going to result in significant low cost and intense competition in the finance industry since internet services not only are good delivery channels but simple, effective and inexpensive. In order to build customer loyalty the financial firms have to do all to accommodate the customer’s needs and using internet services will increase their efficiency, help them compete and will lower their expenses.
It is in the interest of big firms to join hands with smaller companies as they are of great help in attaining the local client base. The competition is becoming more and fiercer not only because of the thriving profitable customers but also because of the increase in the population of the companies that are extremely efficient and cost effective.
Expansion is of crucial importance to any firm’s growth, it needs to be global in its approach, any kind of procedural or cultural clash will result in the firm’s restricted client base as it has been seen in the case of many large players. The bank definitely needs to have firm regulations and advanced technologies in order to attain success globally.
Expansion in various growing markets not only changes the demographics of the clients but also enhance global economy and strengthen the future of the finance service industry.