The FS sector is shifting up a gear and renewing its focus on growth. Demand for savings, investments and health insurance is likely to rise as the population ages and prepares for a longer retirement. Further openings are coming from the increasing affluence and sophistication of customers in emerging markets.
'Focus on growth: Striking the right value balance within financial services', a study carried by PricewaterhouseCoopers in partnership with the Economist Intelligence Unit in 2005, found that no fewer than 65% of the 201 FS executives surveyed felt that managing for growth had become a higher priority over the last 12 months.
Companies need to look carefully at how they position themselves to take advantage of the opportunities of a growth market. 'Piecing the jigsaw: The future of financial services', a study published by PricewaterhouseCoopers in 2005, concluded that organisations can no longer be all things to all people and will need to articulate and concentrate on their most valuable competencies. This might mean focusing on a particular sector or territory, or choosing between being primarily a distributor or manufacturer.
While cost will remain critical, the ability to meet the increasingly exacting demands of today's customers is likely to be the key competitive battleground. 'Focus on growth: Striking the right value balance within financial services' found that 'sales, marketing and customer service capabilities' were seen as the most important enablers of growth over the next 12 months, closely followed by 'human resources' and 'brand, reputation and customer satisfaction'.
