Challenges for the Financial Service Industry in 2017
The year 2017 will be furthermore challenging for the financial services industry forcing market players to reduce the current cost base even further. While the FED increased the interest rates, Europe is still expected to keep the current level of interest rates until at least the second half 2017 which will lead to limited revenues. Technologies such as "RPA" (Robotics process automation) will support the efforts to reduce costs significantly due to the fact that the implementation costs are relatively low and the benefits are usually sustainable, as long as the processes are stable. Additionally, FSI will still be confronted with a vast amount of new regulatory actions (MiFIT, IFRS 9, BCBS 239, etc.). Here, efficiency improvement programs will not be helpful enough to satisfy customers, regulators and shareholders. Additionally, companies will have to focus on innovation which is supposed to be self-driven to ensure a sustainable cycle of new products.