The Organization for Economic Co-operation and Development (OECD) suggests that financial services typically comprise 20%-30% of the total service market’s revenue across the globe.
Despite the existing regulations in the banking sector, the global financial industry is optimizing their service offerings to pursue new challenges for sustainable growth. With rapid innovations and disruptions, companies in the financial services space are planning to increase their competitiveness and offer an array of financial instruments and products to the customers to manage risks and meet their financial needs. Due to the ongoing financial crisis, the financial services space is shifting to a more customer-centric environment to offer reliable and affordable services to the customers. Although the financial services industry is witnessing a promising growth, certain factors may influence the growth of the industry. These include:
Digitization: With the advances in the technology, customers have become more informed and are looking for agility and convenience in their banking possibilities. With the relentless growth in competition, leading banks are facing pressures to stay relevant and updated with innovations such as mobile services. Moreover, some banks are teaming up with digital firms to drive revenue growth and enhance the risk assessment process.
Regulations: In the recent years, there have been fluctuations in the regulatory environment with the entry of nonbanks into financial services. The banks are uncertain about meeting the regulatory compliance in terms of redesigning products and incentive policies and accordingly forecasting their business plans. Moreover, banking organizations are focusing entirely on driving efficiency of their risk and compliance programs to meet the applicable laws and supervisory expectations.
To counter these challenges and offer reliable solutions, leading organizations are insisting on the need for supply market intelligence solutions.
The Business Challenge and Journey
A leading financial services provider was looking for effective ways to operate more cost-effectively and boost their savings. Moreover, their procurement team wanted to improve supplier performance, mitigate supply risks, and drive innovation. The client also wanted to seek ways to meet government, market, as well as management expectations and further boost their return on equity. The primary concern for the client was to embrace technology to achieve savings targets and enhance their return on investment.
To assess the spending patterns and keep track of the essential data, the supply market intelligence specialists at SpendEdge tailored an extensive research methodology. The methodology in the approach comprised of primary and secondary research coupled with qualitative and quantitative research techniques.
The supply market intelligence solution offered by SpendEdge helped the client maximize the value from spend and gain detailed insights into the pricing and the procurement strategies specific to the financial services space. Moreover, the engagement also helped the client gain deep-dive insights into the recent trends and growth drivers and accordingly allocate their resources to meet the business requirements.
Fundamental questions answered in this supply market intelligence engagement include:
The supply market intelligence engagement offered by SpendEdge assisted the client to gain better visibility into the procurement process. The client was able to profile and shortlist the key risks in the financial services space and apply the procurement best practices to remove the bottlenecks and improve service efficiency.