Typically, the consumer financial services industry consists of companies involved in personal loan services, such as credit card services, mortgage brokers and lenders, and consumer leasing providers, such as for personal, education, and automobile loan services. However, the consumer financial services industry excludes lease financing of commercial equipment, consumer brokerage, and investment services. In recent years, the consumer financial services industry has undergone a dramatic change as customers have become more sophisticated and demand high-quality, personalized experiences that match their lifestyles. As a result, firms operating in the consumer financial services space face the need to identify the upcoming consumer-driven technology solutions while establishing robust risk management plans, controlling costs, and driving profitability.
Let’s look at some of the fundamental factors that will influence the growth prospects of the consumer financial services industry in the coming years.
- Deliver an experience: Lately, the dynamics between banks and customers has been changing. Customers don’t want their banking relationship to be purely about transactions; they want advice-driven banking solutions that are personalized to their needs and wants.
- Distribution of services: With recent changes in the role of brick-and-mortar outlets and the growing importance of digital platforms, consumers now expect seamless real-time social and mobile experiences and the service mix should be based on data to make the most of changing patterns in channel usage.
Such factors are forcing companies operating in the consumer financial services industry to leverage solutions like procurement best practices. Procurement best practices solutions help firms adopt best-in-class sourcing and procurement strategies across their businesses. These solutions also provide information about the best practices followed by the peer group companies in the industry space and ensures the delivery of high-quality products and services and personalized experience, while controlling costs and driving profitability.
The Procurement Pain Point and Insights Offered
The client, a renowned player in the consumer financial services industry space, was facing challenges ensuring the agile discovery of innovative potential partners along with advanced risk management, control capabilities, and governance throughout supply and service provider networks. Additionally, the client wanted to identify the peer companies operating across the consumer financial services industry space, their key suppliers, and evaluate their sourcing and procurement best practices and capabilities to cut down their maverick spends across the supply chain.
To cater to the specific business requirements of the consumer financial services client, SpendEdge tailored a comprehensive research methodology. The research approach comprised of primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.
Through the course of this procurement best practices engagement, the consumer financial services client was able to obtain category, supplier, region and branch-level spend intelligence to guide capital allocation strategies. Additionally, the client was able to identify the high-performing, compliant and low-risk suppliers and service providers and controlled costs associated with regulatory compliance. Furthermore, the client achieved operational efficiency and strict spend compliance, while freeing procurement talent to support both product and service innovation.
Fundamental questions answered in this procurement best practices study include
The consumer financial services client identified the functional drivers and commercial decisions that impacted the profitability and implement best-in-class sourcing and procurement strategies across the supply chain. This helped them reduce maverick spends across their business units.