Reshoring to be Key Strategy for UK Banks in the New Year – Bobsguide (press release)

Certeco’s 2014 Predictions for the Financial Services Sector

Reshoring – the process of bringing operations back on shore from offshore locations – is set to become a key feature of the financial services (FS) landscape in 2014, according to Certeco, a business technology change consultancy for banks and insurers. Customer facing services will be the first in line for reshoring, with an emphasis on work that has a high strategic value to the organisation.

IT offshoring will continue to become industrialised to deliver cost efficient IT services, as FS companies continue to drive efficiency. But reshoring for non-commodity services will become more of a focus as EU governments increase their efforts to protect trade and jobs.

New technologies will also continue to be a key strategic feature for the FS industry, with mobile services and devices being particularly prolific. Certeco’s 2014 predictions include:

1.Cash on the decline: people will have less money in their pockets and will becoming more reliant on their smart phones and other hand held devices in 2014 as the use of mobile money and mobile wallets will continue to grow at pace.

2. The rise of the Internet of Things: as mobile connectivity burgeons and more and more mobile devices become connected to the “internet of things” (ABI Research has estimated that more than 30 billion devices will be connected to the IoT by 2020), the more consumer data will be produced, the analytics of which will begin to play a very big part in our lives in 2014.

3. The pace of digital transformation: is set to accelerate even further in 2014, according to experts at Certeco. As competition between the big four banks reaches fever pitch, customercentricity continues to top strategic initiatives and we are all demanding the banking and insurance services that fit with our increasingly technology-enabled lives, banks and insurers will be acting swiftly to adopt and develop the latest innovation trends.

4. Variety of devices: mobile devices are set to get even more varied and more intelligent in 2014. Wearable devices – such as Apple’s anticipated iWatch and Samsung’s Galaxy Gear – will take us to a different level of mobile connectivity. This will continue to present a challenge and an opportunity for financial services companies.

5. Reshoring for FS industry: as outlined above, reshoring will begin to be a key strategic trend in 2014, as banks and insurers start to bring customer facing services back to the UK, providing much needed jobs, particularly for the young unemployed.

Graham Smith, director of Certeco commented: “It’s always a time of transformation and change in the banking and insurance industries. 2014 is no different. 2013 has been a good year to consolidate the position for many financial services organisations particularly following the banking scandals, spiralling regulatory demands and big legislative changes the sector has faced in recent years. 2014 will be about moving on, making operational efficiency even tighter, improving margins, but above all, providing a consistent and unbeatable service for customers.”