The financial services industry is changing faster than ever before - but what does this change mean for the future? To find answers to this question, KPMG asked industry leaders and innovators from around the world what they think the industry could look like in 2030.
Despite the diversity of perspectives, individual aspects emerged from the interviews that are considered relevant and probable across the board. The forecasts and the detailed interviews can be found in the English-language publication „Voices on 2030: Financial services reinvented“. .
The financial services industry is changing faster than ever before. But what does this change mean for the future? To find answers to this question, KPMG asked industry leaders and innovators from around the world what they think the industry could look like in 2030.
Despite the variety of perspectives, specific considerations emerged from the interviews that are considered relevant and probable across the board. The forecasts and the in-depth interviews can be found in the English language publication “Voices on 2030: Financial Services Reinvented”.
Given the volatile environment, the financial sector is facing various challenges that will bring far-reaching changes in the coming years. One of them is ESG, which should be on the top of the strategic agenda. This is because it is changing the economy as a whole and has gained additional momentum due to geopolitical tensions. A wait-and-see attitude will jeopardise the future viability of many business models.
Forecasts for five areas
The participants represent the entire spectrum of the financial services sector, from the largest banks and insurance companies to newcomers. Together, their visions of the future offer exciting insights into where the journey could lead.
Their forecasts cover five areas in which they – and KPMG – expect the most profound changes by 2030:
ESG as a key behavioural driver for systemic change
- The world is lagging behind the net zero target, even as the financial services industry drives the transition through its capital decisions.
- Each decision is an ESG decision: ESG criteria are an integral part of lending and investing activities. The impact potential determines the capital allocation.
- Social and governance aspects are becoming increasingly important due to rising client expectations
- Investors have doubled their exposure in asset classes such as renewable energy.
- This is a global crisis: By working together, especially on tax policy, governments are finally making progress
Democratised data changes the balance of power in the financial sector
- Digital identities enable customers to transact with confidence and offer each brand the opportunity to personalise its offering.
- BigTech takes command: The biggest brands in the banking sector are those that can convince consumers.
- Access to inclusive banking services is enabled through data collection and analysis that is focused on the needs of all.
- The dominance of China’s data-driven tech sector has accelerated the country’s rise.
- Central banks and policymakers are responding to the threat of private digital currencies.
New business models are expanding and adapting
- The metaverse in the multi-channel mix: New spaces offer a more intensive and comprehensive customer experience.
- Regulators still want to support innovation, but have become more risk-averse. They show more austerity with high-profile interventions.
- The disappearing bank: Banking is invisible and integrated into the underlying interaction, from grocery shopping to procurement.
- API first: Concepts such as banking as a service and tools such as developer portals offer comprehensive sales advantages.
- Professional cybercriminals from different circles are working together to share their strategies, as are the financial service providers targeted by the attackers.
Data is changing the economics of financial services
- All insurance policies are personalised and adjusted in real time to the policyholder’s current risk profile.
- The challenges of data protection have diminished in times of data sharing for mutual benefit.
- AI creates alternative credit and risk models with data from e-commerce, social media and e-gaming.
- New market entrants have significantly lower infrastructure costs to access the banking system.
- Platform operators continue to choose the banks they work with, while the rest become low-cost service providers.
More opportunities for those with talent: Ecosystem experience as a competitive differentiator
- Collaboration instead of competition: Partnerships leverage the skills and capabilities of multiple stakeholders.
- Diversity is worth it: A broader talent pool offers richer competencies, including emotional intelligence and technical expertise.
- Purpose has the power: Business entities compete for talent through increased engagement, investment in people and values shared across the business entities.
- Hybrid is the norm: Office spaces are designed to meet the need for interaction and sociability rather than individual work.
- Unbiased leaders: Even long-established business entities recruit senior executives outside the financial services sector.
In "Voices on 2030", these five forecasts are explained in detail. In addition, the experts provide recommendations for action on how to seize the opportunities on the way to the financial services industry 2030. Download the report now.
