Whenever you talk about financial services, financial institutions come into the scene. The institutions offer various financial services that are of benefit to the people. It is a well-known fact that banks or financial institutions have changed drastically over the period of time.
Though the institutions are focussing on a regulatory capital requirement, but on the other hand, modern age modernisation and digitalisation are challenging the traditional ways the service providers interact with the clients or customers.
New market players are also adding to the competition and ability to cater to various needs of the customers in a particular manner that is not only easy for the banking professionals but also convenient for the customers.
Apart from all this, the behavioural and geographical changes are creating new customers who have all new set of expectations from the banking or financial institutions. In a nutshell, the traditional business models are challenged by the new customers and their new expectation levels which are bound to change today’s financial and banking institutions.
Discussed below are some of the factors that will determine the changes that will occur in financial institutions in future.
- Changed regulatory and complexities: As the financial crisis, regulatory pressures have increased the cost of capital, prompted banks to divest themselves of risky or capital intensive businesses or departments, shaped bank attitude towards risk and redrawn the boundary between retail and wholesale banking. In fact, banks have withdrawn from lending to certain constituents, such as Small Medium Enterprises and infrastructure, while investing and recruiting heavily in compliance to meet new regulatory requirements.
- Ongoing digitalisation and technological advances: Fast-paced technological advancement is changing financial institutions and the ways people interact. This has created opportunities for new challengers to interrupt traditional business models and penetrate new markets. The ubiquity of technology across the globe, such as the WWW, mobile phones and Apps, has created financial technical companies who offer lower cost services for traditional services, such as online payments and online trading. Moreover, technology is changing the way that customers interact with financial institutions. It is true that investment in IT infrastructure has increased massively over the last few years; still, many traditional banks remain behind the line.
These are only a few factors that will definitely determine the change in future of financial institutions and banking institutions. But there are many more factors as well that can easily be added to the above-mentioned list of factors.
Whatever may be changes or impacts these financial institutions and banking institutions may go through, but being a customer, you will only wish to get best services along with good suggestions when needed. This can only be done if you get in touch with any renowned financial/ banking institution. Though there are many players in the market, but you can anyways call at Santander contact number to know each and every detail about issues related to money, mortgage, schemes and many other things as it is also one of the renowned financial institutions in the UK.