Decoding Trends & Behaviours

VUCA world, fast-paced changes, technology disruptions, quiet quitting, the gig economy, and the works have all implications on how we view businesses and see technology as an enabler.

Looking at a few trends/behaviors and what implications it carries for financial services in particular and business in general.

#1: Google for searching and validating information.

Information is everywhere – confuses more than it educates

Implication: ?Create a hi-tech hi-touch business, the human element needs to create reassurance around money and process.?Mitigate the intimidation by crafting more relevant journeys. This also means the need for advisory will not go away.

#2: The fast-paced changes are creating chaos and taking time just to be in BAU place.

The drive for perfection and getting it right the first time might be the undoing of businesses

Implication: ?Do learn do – embrace imperfection and iterate in small steps.

#3: Gig economy and moonlighting are becoming par for the course.

Financial quotient or Financial Fitness is being recognized as a life skill to manage flexibility which people are seeking in the post-pandemic world

Scared money does not make any money. One needs to participate in the market to learn from it

Implication: ?Investor awareness programs should be action-oriented to get people to start their journey of participation in the capital markets and financial planning. The regulator should allow organizations to onboard people in a safe and non-toxic manner post the IAPs so that the virtuous cycle continues.

#4: Growing Influencer networks and New Media

People tend to look at family, friends, and peers for recommendations and advice.?The lack of knowledge and wrong incentives can drive inappropriate behaviors

Implication: Time to harness peer-to-peer networks and build responsible, yet engaging communication. How do you build decentralized yet authentic sources of information? Can there be a minimal certification for influencers before they dish out financial advice? How do we harness the power of this new media for the good of the business?

#5: Conscious capitalism

Brand building is about alignment and the superconducting stage of the firm can be configured basis the transparency, teamwork, and talent of the firm. Ironing out mission statements, and vision for the business has become all the more important for being purpose-driven and attracting the right talent. Having the purpose of conviction and relentlessly pursuing that can attract all stakeholders.

Implications: Carry a tone of voice that showcases vulnerability and imperfections in the fast-changing world. Pay a lot more attention to the softer aspects of culture building and purpose.

?#6: Technology changes faster than one can imagine

The adoption of technology as a fad does not add value to the business.?Drawing room conversation should be recognized for the same reason.

Implication: Organisation should look at data, technology, and consumer insights to harness the power of technology. Eg ?Metaverse can create a lot of immersive journeys. Look for relevant use cases of Metaverse to bring alive the future. One of the things people do not get in personal finance is the time value of money or compounding. The Growth Paradox- It takes much longer time coming than you think, but then happens much faster than you would have ever thought. The best things in life come from allowing compounding to work its magic.

#7: People keep their money with trusted brands

Trust building happens with scale and longevity.

Implication: Longevity is determined by managing the risk function well in financial services and building processes for the long haul. Getting scale or driving mindless growth can sometimes build in wrong incentives for organizations forcing people to take shortcuts which might be harmful to the organization.?

2023 is going to bring a sharper focus on value creation and efficiency. Good businesses are built on a fundamental first approach- solving a real customer problem, sound processes, and systems for scaling up and never losing sight of the customer.

Do share your comments, and feedback, and add to the list of trends, and behaviors that you think might be important for financial services.