Hi! Thanks for the question.
I will list here the links to articles that deals with the issues
facing the different sectors of the financial services industry. I
will also try to provide quotes from the articles I will cite whenever
possible but I highly recommend that you read them in their entirety
to get a complete picture
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Banking Industry:
?Increasing the share of wallet from existing customers has become the
order of the day. Having learned from failed Customer Relationship
Management projects, banks are emphasizing more targeted technology
investments and high-quality service.?
?Locating operations in lower-cost locations, such as India or China,
can dramatically reduce operating costs, while maintaining quality.
For banks able to master the complexities, the benefits are
substantial.?
?Banks are confronting a tidal wave of regulatory changes including
Basel II, International Financial Reporting Standards, the
Sarbanes-Oxley Act, and anti-money laundering legislation. A
comprehensive approach can better ensure compliance and control
costs.?
?Technology budgets have been scaled back over the last several years
in the name of cost reduction. To remain competitive, banks will have
to renew their commitment to investing in new technology strategically
-- to reduce costs, improve efficiencies, and strengthen
revenue-generating initiatives.?
?Top Ten Global Banking Issues for 2004?
http://www.deloitte.com/dtt/research/0,2310,sid%253D6970%2526cid%253D35348,00.html
?More banks are recognizing that the branch is still the cornerstone
of retail banking. As banks focus their efforts on growing revenues
through sales of more complex higher-margin services and products,
they are finding that the branch is the most effective delivery
channel.?
?Multi-channel integration is garnering the attention of a growing
number of banks. Although it is far from becoming a mainstream
exercise, it is moving away from the early-adopter phase to being a
feasible initiative for most banks to undertake.?
?Faced with the high costs and integration challenges associated with
running the antiquated core banking systems, banks are beginning to
consider replacing these vital systems.?
?By 2004, most of the top 50 US banks will have a senior executive
appointed to the role of Payment Czar or head of a payments council.
Payment Czars will play an increasing role in shaping banks'
strategies in the changing payment space.?
?With the signing of Check 21 into law, the full potential of check
imaging technology can be realized.?
?Banks are increasingly convinced that Internet banking's ROI can
extend beyond simple cost-to-serve equations and direct revenue
models.?
?Automation of the Loan Process Will Expand?
?Banks Will Continue To Spend on Compliance Solutions?
?A Look into Banking Trends for 2004?
http://www.financetech.com/utils/printableArticle.jhtml?articleID=16700789
?Some banks and thrifts will endure significant declines in earnings,
especially in the first half of 2004, Tejera said. The effect of the
decline in mortgage refinancing should not be underestimated. The
volume of refinanced residential real estate loans rose from $2.4
trillion in 2002 to $3.4 trillion in 2003, but will shrink to an
estimated $1.65 trillion in 2004, Tejera said, citing the Mortgage
Bankers of America.?
?On a global scale, the banking industry faces several obstacles in
2004, according to a report issued Dec. 17 by accounting and
consulting firm Deloitte Touche Tohmatsu.?
?Bankers try to fill void left by refinance craze?
http://66.102.7.104/search?q=cache:Foy68e2FvtUJ:www.bizjournals.com/portland/stories/2004/01/12/focus6.html%3Fjst%3Ds_cn_hl+Global+Banking+Industry+Outlook+2004+-+Top+10+Trends+-+Deloitte+2004&hl=en&ie=UTF-8
?The biggest factor constraining consumer loan growth is the debt
service burden, and while it remains high, it has been stable for the
last few years because of consumer refinancing activity. Orenbuch
expects revolving credit growth to increase modestly as consumers take
out less money from refinancing their mortgages.?
?In 2004, mortgage activity will be cut in half and refinance activity
will decrease by 75 to 80 percent, Orenbuch said. Bank profitability
is strong and likely to improve. With regard to credit quality,
bankruptcies are falling for the first time in three years.?
?He also predicted that commercial loan demand will make a comeback in
2004, climbing out of negative territory and perhaps breaking even by
the end of the year.?
?Roundtable - The Banking Industry Outlook for 2004?
http://www.fdic.gov/news/conferences/roundtables/BIOutlook_summary.html
?Branch banking is exploding across the country. Banks which had
formerly invested heavily in online banking have learned that
customers also demand the convenience of neighborhood branches and
drive-up windows. Banks are improving their e-commerce sites while
pouring capital into more and more branch locations.?
?Taking a page from the retail industry, banks are equipping their
locations with a host of entertaining and service-oriented
conveniences. The latest branch banks have been carefully designed to
emulate hip retail stores. In them, consumers may find coffee bars,
water and snacks such as popcorn, children's play areas, retail kiosks
with logo-encrusted items such as t-shirts, caps and pens for sale and
pleasant music playing in the background.?
?Branch Banking Booms?
http://www.plunkettresearch.com/finance/financial_overview.htm#2
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Insurance Industry:
?Many companies are pulling out of foreign markets unless they have
attained a dominant position. Lines of business that don?t support a
firm?s core business are being divested.?
?Firms need to reduce underwriting losses by exercising more
discipline and using the latest technology tools to quantify risks
more accurately. Automation and other cost-reduction initiatives have
become a top priority.?
?Meanwhile, legislative and regulatory developments create additional
challenges. Regulatory bodies in the European Union (EU) are upgrading
capital-adequacy standards. The movement to unify accounting standards
and implement accounting standards for insurance products is gaining
steam.?
?Top Ten Global Insurance Issues for 2003?
http://www.deloitte.com/dtt/research/0,2310,sid%253D6971%2526cid%253D14603,00.html
http://www.deloitte.com/dtt/cda/doc/content/dtt_financialservices_topteninsurance-2003_030715.pdf
(Complete Report)
?Insurers, reinsurers and risk managers in growing numbers are turning
to risk modeling--complex computer applications that can help
determine the best possible pricing or risk management strategies.?
?Modeling trends for 2004?
http://www.findarticles.com/cf_0/m0BJK/16_14/111529054/p1/article.jhtml
?Where are new and emerging risks coming from? From sources you read
about in the newspapers: mold, asbestos and repetitive motion claims.
"These are the key issues which impact employees who occupy large
offices," he says.?
?Through the Lens Sharply?
http://www.riskandinsurance.com/040401_industry_1.asp
?Deloitte finds that 79 percent of insurance executives believe that
the insurance industry is overdependent on healthy investment returns.
At the same time, 86 percent feel improving their core insurance
operations is the best route to strong profitability. According to the
survey, improved underwriting, more reliable information on risks,
enhanced claims management, and tighter controls are once again
industry priorities.?
?Financial Services Publications - Issues and Trends in Insurance?
http://www.deloitte.com/dtt/article/0,2297,sid=1013&cid=40426,00.html
-------------------------------
Securities Industry:
?Securities markets around the world are being transformed by
increased competition and new technological capabilities. The shifting
landscape requires firms to have the ability to trade nimbly across
multiple trading venues in search of the best prices for their
clients.?
?Hedge fund assets under management have exploded, making these highly
leveraged, active traders among the most profitable institutional
customers for major securities firms.?
?To reduce costs, more securities firms are shifting operations to
foreign countries, often in the developing world. ?Offshoring? adds
additional complexity, but can generate savings far greater than
domestic outsourcing while maintaining quality and often with a time
advantage as an added bonus.?
?Merger activity among securities firms has fallen off, and mega-deals
are now less in favor. Many firms are pursuing a more focused strategy
of ?niche? acquisitions of smaller firms that strengthen specific
capabilities.?
?After a litany of scandals, securities firms need to rebuild investor
confidence and trust. Although regulation will help, firms need to
convince investors they are adhering to the spirit, and not just the
letter, of the law.?
?Top Ten Global Securities Issues for 2004?
http://www.deloitte.com/dtt/research/0,2310,sid%253D6970%2526cid%253D33403,00.html
?New research from TowerGroup finds that following dramatic cost
cutting, layoffs, retrenchment and scandal, the securities industry is
emerging as an entirely different business - one more reliant than
ever on technology and automation.?
?Regulators will continue to inundate securities and investment firms
with a flood of new requirements through 2004 and beyond. In the face
of this deluge, IT managers will find themselves forced to prioritize
regulatory initiatives, while chief compliance officers (CCOs) will
take on increasing responsibility.?
?Next year will see the completion of the "electronification cycle,"
when brokers will abandon what's left of the human side of trading in
favor of fast, reliable and secure electronic crossing, matching,
routing and trading systems.?
?After years of false hopes, the application service provider (ASP)
model will gain enormous traction in the securities and investments
industry.?
?Securities Industry on Cusp of Major Business Shift, with Increased
Reliance on Technology and Automation?
http://about.reuters.com/pressoffice/pressreleases/index.asp?pressid=1407
-------------------------------
Other Issues:
?For auditors, 2004 will be another good year, thanks to the second
phase of Sarbanes-Oxley. It requires that auditors certify the good
health of corporate systems designed to assure that internal financial
data are correct. Despite the fact that every big firm has had at
least one client blow up in the recent scandals, they are all expected
to benefit.?
?Consulting firms can expect no such gains, though business will be
better than last year. Kennedy Information, which tracks the
consulting industry, expects global revenue to increase 3.4% in 2004,
to $123 billion.?
?Professional Services: Auditors Applaud, Consultants Cope?
http://www.businessweek.com/magazine/content/04_02/b3865628.htm
?The technology requirements of the financial services arena is
therefore, highlighted by the need for reliable, cost-effective
systems, not only capable of catering to a distributed business model,
but also of being integrated in a manner that customers and staff
benefit from a common service.?
?Furthermore, transparent integrated systems are required due to the
ever-growing demand for unified messaging to provide a single access
point for the various channels of communication used in modern
businesses.?
?The dominance of IP technology, increasing the use of virtual private
networking (VPN) and the prospect of greater availability of VOIP
(voice over Internet Protocol) are factors that support the
expectation that customers will make greater use of distributed
computing systems.?
?The financial services industry: Technology convergence in action?
http://www.itweb.co.za/sections/techforum/2004/0402190822.asp?A=MAG&O=W
?They are so-called prepaid cards -- plastic cards with money already loaded.?
?Also known as gift cards, they are a bright spot in an otherwise
crowded market for card issuers American Express Co. (NYSE:AXP -
News), Visa USA and MasterCard International, research firm TowerGroup
said in a report.?
?Last year, payments on prepaid gift cards were estimated at more than
$30 billion, and they are projected to exceed $73 billion by 2007,
TowerGroup said.?
?"Within the next six months, you should be able to buy it all over
the place, not just online and via phone," Beard said, adding that
American Express is focusing on offering the cards in grocery stores,
drugs stores and malls.?
?Credit Card Co's Focus on Prepaid Product?
http://biz.yahoo.com/rb/040410/financial_prepaidcards_1.html
Search terms used:
Issues trends ?financial services industry? ?securities industry?
"insurance industry" 2004
I hope these links would help you in your research. Before rating this
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Regards,
Easterangel-ga
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