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Defining the Future of Finance
Insights from a Deloitte survey shed light on how finance executives across the world think emerging trends might shape the future. In the report, Deloitte broke these executives into two groups: the G7 economies (US, UK, Canada, France, Germany, Italy, and Japan) and the rest of the world (RoW).
New Technology vs. Talent Gaps
Both groups anticipate that the greatest challenges will be newer technologies, emerging market players, and shifting customer demands. Here’s a snapshot comparison:
- Both expect substantial changes to come, but the G7 representatives expect them much sooner.
- Both groups expect technology to be the biggest driver of change, while regulation came in second place.
- The emerging technologies that were discussed include the Internet of Things (IoT), mobile payments, robotics and cognitive automation, blockchain, biometrics, and wearable devices. G7 companies feel less confident about their potential impact, and are thus less likely to present them as solutions to clients. Roughly 67% of RoW countries strongly believe in their future impacts.
- G7 companies feel less pressure from customer expectations and regulatory burdens. US executives actually predict a decrease in regulatory effects.
- Biggest skill gaps for G7: Innovation (43%), Sales (41%), and Risk & Compliance (40%).
- Biggest skill gaps for RoW: Innovation (46%), IT (41%), Product Development (38%), and Risk & Compliance (38%).
- RoW firms feel they will be significantly more dependent on emerging technologies. The G7 leadership remains hesitant until seeing further proof, considering the immense requirement of coordinating a company’s moving parts and greater resource allocations. As the pace of change gains momentum, however, this can be risky. The giants risk missing the boat.
- G7 companies are more focused on immediate changes in their operating structures, as they believe that going to market will be influenced by heightening needs in risk management and product development.
- G7 companies are more concerned with long-term talent shortages. Interestingly, RoW companies pursue opportunities to network with other financial and even non-financial entities within their own ecosystems. These smaller players wish to connect with talent as opposed to simply filling in gaps.
While there are commonalities, RoW companies appear to be more assertive in leveraging the opportunities for growth presented by their larger counterparts because they are less committed to dated platforms and infrastructures. Either way, the next five years promise new levels of change and development.
Read the full report “Talent, Technology, and Transformation here.