The global financial services industry grew by 15% in 2005 to reach a new record high of $8700bn and the sector remains on track to triple in value within a decade, according to Mercer Oliver Wyman’s annual industry report. Other results from the report show:
- More than three-fifths of financial services CEOs expect an upturn in strategic, selective M&A activity this year and there has been a substantial shift towards new markets to provide opportunities for future growth;
- CEOs expect the financial services sector to outgrow the global economy for a third consecutive year in 2006, predicting market value growth of between 5% and 14%;
- European CEOs in particular show a relatively high interest in cross-border acquisitions, as opportunities for consolidation in more mature markets become increasingly limited;
- A CEO poll indicates a consensus that the financial services sector will grow three times as quickly as the world economy next year.
INSTITUTE OF FINANCIAL SERVICES REPORT:
CUSTOMER VALUE – IS THERE AN INFORMATION DEFICIT?
In a survey of customer value at 30 leading financial institutions in the UK, the key findings show:
- 77% of respondents believe that there are significant gaps in the ability to measure customer value. A quarter of respondents reported having no access to any customer profitability analysis;
- Many institutions have only estimates of the cost side of the customer value calculation and do not have a real measure of individual customer value and profitability;
- 92% of respondents believe that past customer relationship management (CRM) projects put too much emphasis on sales versus developing long-term value from the customer;
- Two-thirds of respondents believe that one or more past CRM investments have failed to deliver the value expected.
