Andrew Dawson, head of PA’s financial services strategy group, is quoted in an article in the Financial Times, on why the financial services sector needs to change.
The article explains that banks must find a way to adapt and although some are doing so, customers are not always aware of just how much some of them want to change. The article suggests that perhaps the obstacle to successful adaptation lies in the boardroom.
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Andrew explains that there are two main reasons why the sector has to change. First, technological change — the spread of smartphones for example — has altered customers’ expectations of their relationship with providers.
Andrew goes on to say that secondly it is the demographic change which is bringing new and younger customers into contact with financial services companies, which means businesses must change too.
Older customers that have been passive, Andrew says, are supposedly more likely to get divorced than change their bank account. However, he says: “Banks and other financial services firms can no longer rely on the enormous customer inertia that assured their survival in the past.”
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