For over 4 decades, Singapore has developed the financial center not just locally but all over Asia Pacific. Because of the strong economy, many businesses consider Singapore as a stable location to start a business, for expansion as well as for investments.
However, despite its growing economy, many business owners in the financial sector would never say that it is easy. Whether be it banking, insurance, asset and wealth, investment, etc same with other business sectors there will always be issues to face into. Here are the 5 main challenges every financial sector is facing this 2017
#1. Restoring public trust and improving customer service.
Nowadays, the decision of customers to choose which financial institution to consider depends on its ability to provide better customer service. Re-establishing the customer’s confidence in your service is important.
- Mobile and online banking for the convenience of the customers
- Available call centers to address inquiries, complaints, and requests immediately
#2. Data Security and Privacy.
Many financial organizations would not recover from the loss of data that cannot be retrieved which leads to damage on reputation to their customers and suppliers. Not to mention the high cost of profile breaches and fines can also hurt the budget of the institution.
In order to reduce the risk and establish a secure procedure, paper documents are stored and can be retrieved.
#3. Competition/ Crowded market.
The competition within the financial sector is very strong. To some, competition is a good thing because the eagerness to do better is always there. But when it comes to the financial industry, having lower profits because of the rise in the competition is not good for the business.
- Know who your competitors are.
- Understand what they are an offer and make your service better.
- Make your marketing stand out by highlighting the benefits that they can get when they consider your service.
McKinsey defines cyber security as the protection of valuable intellectual property and business information in digital form against theft and misuse. This is the most dangerous risk every financial institution is facing nowadays not just in Singapore but around the world.
Up to now, many are still struggling to keep up with the cyber security risk management policy or program. In order to address this issue, it is advised for the CEO and other senior executives to;
- Conduct a risk awareness and preparedness program.
- Create a response plan to guide your organization if something like this will happen.
#5. New revenue opportunities.
Because of the different problems every financial industry are facing every day, not to mention the competition, many are struggling with their revenue. Many customers are hesitant to trust and would research for better options first before they would consider.
- Establish a good relationship with your customers.
- Maintain a good status by providing good customer service.
- Resolve customer issues faster
Challenges will come and go regardless what industry you’re into. Whatever problems you encounter, what’s important is you strive for the success of your business.