“Financial institutions will be forced to rethink banking from the ground up. This will affect the way they communicate with customers, how they manage traditional products, processes, financial and risk operations, “says Dražen Tomić, SAP Financial Services Industry Director for Central and Eastern Europe, at the SAP Industry Days virtual conference: Financial Services Days
During the pandemic, five major megatrends in finance have emerged that have an impact on its development. These trends include not only hyperpersonalization, move2cloud, adoption of new technologies, regulation, but also costs and margins.
The purpose of hyperpersonalization is to satisfy customers even more than ever and thus change your corporate business model in relation to customers. “As a result of digitalisation, customers are leaving a much larger footprint than ever before and expect precise, tailor-made offers,” explains Tomić.
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But the number and type of new technologies that companies must learn to adopt are also changing. The range of various conditions and regulations has grown significantly, as has the volume of data that companies and banks collect on customers. “An example is the ESG, ie environmental social responsibility, which companies in financial services must accept and report,” explains Tomić.
The trend in costs and margins is linked to the fact that we have been living in an environment of zero interest for several years. “In a market where there are zero interest rates, in a market where banks and insurance companies are unable to distinguish between traditional products, the question is whether we can remain relevant at all and how can we provide new services to our customers?” Says Tomić.
The huge transformation in the area of finance has a large impact on the budgets of every company. According to a survey by the CFO Club among CFOs, the biggest risk to their business will be the global recession. According to the survey, at the beginning of the global recession pandemic, no one expected it, and it seemed more to everyone.
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“Today, among other things, the directors think that the pandemic will turn into an economic crisis. Today, however, we see that the crisis is occurring and, from an economic point of view, may have much greater effects than the crisis in 2008, “says Dean Brabec, President of the CFO Club. At the same time, according to the survey, CFOs believe that the economy will return to “normal” within two years.
However, according to Brabec, the pandemic showed that companies that had crisis plans among their long-term plans succeeded and did not collapse. They were able to respond to change, they were flexible and they did better with the use of a contingency plan. But the area of human resources is starting to be a big problem and will be in the future. All companies perceive this area as highly critical in the future. “The employee will be your customer. This will be a great challenge in the future, which applies not only to the business sphere, but also to any industry, “points out Brabec.
At the same time, however, companies learned a lot of new things during the coronavirus crisis. “As a result of the pandemic, companies are reducing their costs, learning to manage their cash flow, digitizing, looking for investments and wanting to use the customer data collected,” emphasizes Brabec.
Today, SAP operates in a total of 130 countries and is the market leader in enterprise application software, helping companies of all sizes to function. The company has analytical technologies that help turn classic companies into intelligent ones.
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