Addressing some 600 financial services executives at a business and technology conference in Boston Thursday, TowerGroup Financial Services President and CEO Karen Cone outlined what she calls the five “mega-trends” she says will dominate the industry in the next five years.
Unfolding her comprehensive list, Cone briefed industry players on maintaining “mega-brand power” as cross-selling and consolidation shift the industry. She talked about how “niche” players – smaller, specialized companies independent from banking giants – can also get in on the action and thrive.
Cone stressed the importance of regulation. As financial institutions struggle to win and keep customer trust, companies must accept that this will be an inherent cost of simply doing business. She also addressed how companies can and are taking advantage of tools that can predict business trends to be proactive.
And Cone discussed how information technology will be the key differentiator with the financial services industry. She said IT spending across the industry will reach $361 billion in 2005 and will grow to $450 billion by 2010.
“By 2010, those institutions that have created interoperable infrastructures, internally as well as externally with third parties will be the clear leaders in their industry,” Cone said Thursday.