By Daniel Hunter
The value in financial services is quickly shifting from balance sheets and physical distribution to information, says Oliver Wyman, the global management consultancy in its annual State of the Financial Services report.
The report, A Money and Information Business, finds that most financial services companies have an opportunity to become information-driven companies that grow and monetise their information assets. Today US non-banks have 45% of the market share of the potential bank-related information business sector and that figure is rising.
“Money is a value business, ‘information’ is a growth business. The value of money has never been lower and so financial services firms that define themselves by their monetary balance sheet will struggle to grow. Those that instead define themselves by the growth potential of their information have a very different future — it is crucial that firms shift their focus,” said Aaron Fine, partner at Oliver Wyman and primary author of the report.
Financial services companies that that exploit this opportunity will find areas to prosper even in the face of challenging macroeconomic conditions and regulatory uncertainty. On the other hand, firms that fail to identify how the evolving information landscape is affecting their business could suffer from a similar kind of disruptive change witnessed by the travel, media, telecommunications and music industries.
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