A recent survey of financial-services leaders shows differing expectations about the future particularly the role of the Internet and financial supermarkets. Casual predictions about the future are frequently incorrect, but thoughtful ones can identify the likely consequences of current market trends. They can also challenge current, perhaps conventional, thinking, enabling management to develop clearer insights into its own business s direction, opportunities and challenges. The resulting views may provoke some useful and interesting debate about where the financial-services industry is heading.
Boomers win, and it s all about consumer needs in retirement.
The CEOs in all four financial-services sectors are virtually unanimous in their belief that payout products and services are an emerging and significant opportunity. Whereas much of the industry s current emphasis is on savings, investment and accumulation products, baby-boomer needs and hence, industry attention likely will shift to the payout phase or consumption of accumulated savings. The product revolution that began in the early 1980s with universal life could repeat itself in a different form in response to new and just-emerging consumer needs. Advice is the fuel that makes the industry grow. CEOs believe that advice, planning and counsel will grow in importance as a means of customer acquisition, retention and development.