The Digital Transformation is bringing interesting changes to every market out there, but before you hit the “Evolve Button” you need to assess the values your enterprise already has.
Here’s a clue on where to start assessing the values of your company.
Nowadays, all you need to set foot in the door of the banking business is a few thousand dollars and a catchy name, right? Well, technically you are not wrong. However, there is a new frontier on the horizon of financial services. The habits of modern customers are changing rapidly, and so should the habits of every type of business, especially business in the financial sector. So, what gives?
Enterprises which already established their brand through valuable services and community values are entering a “make it or break it” adaptation phase. If we take a look at this Gartner (2018) prognosis, within the next 10 to 12 years, a vast number of financial companies will simply run out of business.
This may sound like a vague estimate, but their forecast predicts a percentage as high as 80%. Yes, you have read that right. Only 20% of companies will prevail, while the rest will fall out of the mainstream, or completely disappear, trampled by the new competitors.
To make sure your enterprise stays relevant in this game, the very first thing you need to do is to ditch the “it can’t happen to us” attitude. A lot of companies with a more traditional approach to business tend to take this stance, but over and over, it has been proven that the market change we are experiencing is changing the game entirely.
To make sure that your business secures its spot within that magical 20%, you need to start reevaluating your strengths and realize how much of a head start you have against the competitors that are yet to come.
As superficial as it sounds, having a well-built relation with the market you are doing business in is the biggest running start in the race ahead of you. We are all aware of the challenge that is meeting the standards of the country or city you are operating in. Often, it takes up to ten or more years to establish a stable relationship inside this financial ecosystem, and it takes a whole lot more to keep it.
However, if you are already a part of the bigger picture, you need to work on strengthening the roots of your company and prove that you can offer much more to the clients you already have. A newly-formed competitor will have to go through this forging process from the beginning, while you can route your resources to focus on the next big thing:
No matter if you are working with individuals, large companies or government institutions, keeping your clientele satisfied with the services you provide is paramount! The days of aggressively reeling new customers are finally behind us.
But, how is this a head start advantage?
Trying to beat a young company in the game of getting new clients is difficult. Newer generations are willing to give a chance to novelty companies first, but going down that road is often more trouble than profit.
That is why investing in strengthening the bonds between you and the old customers will get you further than developing a potential failure that is hunting for new ones. After all, being a valid competitor in the financial sector, no matter the size of your enterprise, doesn’t come cheap, which brings us to the third critical point of the assets you have.
Anyone can open a bank or an insurance company, but not everyone has what it takes to follow through, and defeat every obstacle when it comes to licensing and governmental standards.
Use this carefully forged asset as rocket fuel forward. After all, this is the real challenge of opening and keeping the business, and new competitors will not be able to gather time, money and other resources overnight. The best part is, your enterprise doesn’t need to battle this long and hard process again.
You could probably notice that we talked about some pretty standard, non-tech related things, and put them on a pedestal of importance. The reason why you should see and embrace these virtues that your company has is all that is needed to enter and survive the cruel transformation period that awaits us all.
If you exploit and utilize these assets that took time to build and improve, you will have more time and resources to put into developing new services, and you will have more focus to invest into listening to the ever-changing market.
The best way to fight through the incoming storm is to realize that you already have what it takes, you just need to use it effectively.
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