file

Davos Briefing Book

The best thinking from Marsh & McLennan Companies prepared for the World Economic Forum’s annual meeting.

Marsh & McLennan has been a strategic partner and contributor to the World Economic Forum for nearly 15 years, reflecting MMC's journey of collaboration and participation in the event.

file

Briefing Book

State of the Financial Services Industry

Understanding financial threats to opportunity in an increasingly interconnected world.

  • The State of the Financial Services Industry 2019: Time To Start Again
    Examining the potential for the industry to start again.
    #1_Cover story_Social Media card

    For an industry whose product – the movement and storage of money and the management of risk – is electronic, financial services processes are manually intensive. Surveys show that customers are rarely inspired by the service and yet the consensus is that a digital overhaul of legacy systems will be the work of many years.At the same time, new businesses underpinned by digital capabilities are gaining traction.

    Imagine if you could combine what is possible in a new build with the business model advantages of an existing firm. We call this approach greenfield.It means tapping into the same flywheel momentum of growth employed by Big Tech, breaking out of the low-returns cycle. The quality and low cost of new technology, the potential for dramatic change in competitiveness, the reduction in conduct and cyber risks if done correctly, and modern methods for migration, all make this idea compelling right now.

    In the 2019 edition of Oliver Wyman's State of Financial Services report we examine the potential for the industry to start again and point to the first steps in the journey – "go build!"

  • The State of the Financial Services Industry 2018
    “Big tech” may be poised to capture an increasing share of customer attention and wallet from financial services incumbents.
    SOFS

    Who will close the customer value gap in Financial Services and reap the rewards? According to this report from Oliver Wyman, traditional financial services firms will need to accelerate customer value creation or risk conceding an increasing share of customer attention and wallet to other firms, primarily to “big tech.” While financial services incumbents have largely recovered towards relative health 10 years on from the financial crisis and conditions have improved significantly, there is a gnawing sense of concern regarding the prospects for future underlying industry growth.

  • The State of the Financial Services Industry 2017
    As digital technologies change how people live and work, financial services firms need to choose how they will adapt to a broadly reordered marketplace.
    SFSI 2017

    In this Oliver Wyman report, we discuss how incumbents can do so by organizing their overall transformation journey using three archetypes inspired by the tech industry: demand aggregator, platform provider, and component supplier. Each archetype describes a differentiated role a firm (or business unit) can play in a modular financial services ecosystem, as well as the capabilities it needs to focus on which will provide it with sustainable competitive advantages. In addition, the report explores the broader organizational implications of each archetype, and management actions that can guide an incumbent’s journey to building competitive advantages and increased shareholder value.

  • The State of the Financial Services Industry 2016
    Modular Financial Services - the new shape of the industry progressing forward.
    sfsi-2016-edited

    Financial services companies have gone through major changes over the last 10 years. Nonetheless, while the turmoil in financial services has been dramatic, other industries have been more radically transformed. For example, digital technology has destroyed established business models in music and publishing. Such a transformation may now be on the horizon for financial services.

    As recorded in this Oliver Wyman report, we believe financial services are becoming “modular”, with digital distribution platforms, new product providers, alternative sources of capital and a growth in outsourcing fundamentally reshaping the industry.