Thus technological innovations, rising taxes and stricter regulations all lead to doubting of the traditional business model. Consequently, the shifting of wealth towards emerging markets provides limitless opportunities. The following are some of the drivers of the financial services industry; The well-informed bank customer-There is going to be a profound change in business and consumer profiles over the coming years. Social, technological and demographic factors will greatly split customer tastes, preferences and needs. Thus, as people and by extension bank customers travel more, play and work “virtually” in addition to living longer, the financial services industry will not only have to readjust as well as manage its costs, but also enhance its value propositions as well as service concepts, if at all they are to effectively compete. Thus banks should look for techniques of designing particular services and products to address the above changes with labeling, category and packaging management becoming critical.
So as to avoid reduced public confidence in their industry banks therefore should re-learn effective customer communication and restore as well as maintain customer confidence (Huang, 2011). Since the customer base is a key driver in banking sector; banks should tailor products as well as distribute them to every segment.
In order to succeed, banks must make various choices such as embracing a consistent approach in the way they offer their products, brands, channels as well as cost-effective delivery of services. Moreover, banks must design ways of satisfying many customer segments arising from one product “factory” just like the automobile industry does when serving many consumers having different vehicles that have been built from the same platform (Mockel, 2010). Secondly banks must be flexible in the manner in which they deliver their services and products.
Thus, for instance, a retired British officer holidaying in Spain should comfortably clear his bills using his British account. And a college student should have a savings account that can accept monthly remittances from two different accounts in two or more countries. Thus, in order for banks to thrive they need to bundle the accounts they currently have into packages that are tailored to fulfill such particular requirements. Thirdly banks need to constantly upgrade their IT infrastructure to ensure that they accomplish
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