Financial sector in the face of major transformation

The financial sector is facing a major and fast digital transformation. In 2018, regulation will result in ever-increasing competition and open up banks’ customer data to third parties. New competitors from non-financial industries are entering the sector.

With intensifying and globalising competition, customers are demanding from Finnish players as smooth and easy service experience as they are accustomed when using the services provided by the best-of-breed international firms. OP no longer competes with traditional banks and insurance companies; financial services are also being provided by international technology giants and new players in the sector.

As customers are faced with a growing number of options and switching a service provider is easy, they require financially smarter and more proactive service – 24/7. Customers and other stakeholder groups also expect companies to demonstrate more transparency and responsibility by emphasising their own values in making choices.

The financial sector is also challenged by large-scale social changes in the operating environment, which involves, for example, ageing population and transformation in the employment landscape. Transition from ownership to the right of possession is challenging a number of traditional practices in the financial sector.The financial sector has potential in finding new sources of growth in a role of safeguarding prosperity, providing healthcare services and creating new economic activity.

The underlying megatrends and phenomena are intertwined in a diverse way. OP monitors proactively changes in the operating environment and seeks growth opportunities in the transforming financial landscape according to its strategy. We aim to rise to the challenges presented by the operating environment and to seize the opportunities it provides.