What Financial Services Execs Can Expect In 2017

Peter Wannemacher

Every fall, more than a dozen Forrester analysts across multiple roles meet to discuss what executives and leaders at financial services firms should anticipate over the next year. Driven by our ongoing research, the result of this brainstorm is now available as the just-published “Predictions 2017: Pioneering Financial Providers Will Partner With Fintech To Build Ecosystems” report. Forrester clients can read the full predictions report by clicking the button here:

               

For non-clients, here are three of the 16 predictions we outline in our new report:

  • Leading providers and fintech firms will partner to build ecosystems. Dynamic ecosystems of value threaten traditional, vertically integrated financial firms that want to stick with the old-school value chain. But ecosystems also offer opportunities to financial providers that think carefully about the roles they want to play in the ecosystem — and by extension, the role they want to play in customers’ lives. Pioneering financial providers like BBVA have built ecosystems with fintech firms like OnDeck, and we predict that in 2017, more leading firms will follow suit and build dynamic ecosystems of value.   
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Insurers, It’s Time To Emerge From Your Long Winter Sleep

Oliwia Berdak

Spring is finally here, and with that, a time for wild animals to emerge from their winter sleep. We humans don’t really hibernate, but we can find it difficult to get out of bed to face a rather frosty environment. This applies to companies, too.

I wrote last year that European insurers were waking up to the threat of digital disruption. I should have qualified this sentence: Some European insurers are waking up to it. And even fewer are getting out of bed and doing something about it. In 2015, the gulf between digital insurance innovators and other firms is expanding.

As we researched our new report about trends in European digital insurance, it became clear that no one is really disputing the value of direct insurance. European insurers have suffered seven lean years, as premiums in property, casualty, and life insurance largely stagnated. Direct sales have often been an area that continued to deliver growth. Because of this, we expect most European insurers to step up their investments and efforts in this area.

But here is the key point: Digital technologies are much more than just a channel. They can drive a business transformation to deliver new customer value and greater operational agility. Digital technologies can help insurers in particular build more persistent bridges to their customers’ lives to address the industry’s low customer engagement and creeping commoditization.

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