New challenges for banking, financial services and insurance

Abstract

The crisis with the COVID-19 pandemic shows investors, policy makers and the general public that natural disasters can cause economic damage on an unprecedented scale. The pandemic has made customer experience even more differentiated, so banks, financial service providers and insurance companies need to optimize their operations and transform existing business models to meet new requirements and withstand competitive pressure. Because the processes are the "veins" of a highly regulated business, they must adapt to unprecedented change. Changing business models, disruptive technologies, and compliance pressures are forcing traditional institutions to reorganize the way they do business. Digital transformation, the macro trend that has defined the past decade, has accelerated at an incredible rate during 2020. Creative new solutions are made out of the need for people to connect despite physical distance. In addition, customer expectations have changed, so many of them want to be provided with ongoing personalized services. But moving from the old service delivery system to modern solutions has never been an easy task.

LIMEN - International Scientific-Business Conference - Leadership, Innovation, Management and Economics: Integrated Politics of Research

“…Moreover, demand for goods and services has fallen, with more uncertainty and lower revenues. World trade in 2020 fell by 10% (Klein et al, 2021, Radić, 2021.…”

“…At the start of the Covid-19 pandemic, when semiconductor shipments to the automotive industry declined globally in the second quarter of 2020, this shortfall was offset by high demand for computer and electronic equipment due to the transition from work to home and distance learning. After the global recovery, semiconductor production was not enough to meet the jump in demand in the automotive industry (Radić, 2021, Everstream Analytics, 2021. The production of semiconductors is very profitable, and the number of companies engaged in this production in the world is very small concerning the growing needs.…”

“…A further "shock" was felt in the form of interruptions in transport from Asia (China, Japan, South Korea, Taiwan, Thailand), rising transport prices and a lack of semiconductors. This issue is not expected during 2022 (Radić, 2021). The third "shock" was felt with the increase in the price of energy, especially oil and gas, which further complicates the already complicated situation.…”