Amidst the changing operating environment, the financial sector has undergone major transformations. Mega-trends such as climate change, digitalisation and globalisation are impacting the activities of banks and insurance companies also in Finland. Payment transactions and financial operations are becoming increasingly international. As a result of climate change, environmental disasters will likely increase in number, which may bring additional costs for insurance companies. Social changes, demographic shifts and evolving consumer behaviour also influence the customer base, personnel and services of the financial sector. The great financial crisis had a lasting impact on the euro area economy and banking business, especially in the form of the extensive regulatory changes that followed.
In Finland, people have become more interested in seeking personal preparedness and risk management to safeguard their financial security for example in the event of their own or their family members’ illness. The foundation of Finnish social and healthcare is the publicly funded system, which is complemented by private services and insurance. According to Finance Finland’s statistics, the number of health insurance policies is showing modest but steady growth. Health insurance enables quick access to treatment at a facility either chosen by the individual or recommended by their insurance company.
Technological development
Technological progress is transforming the financial sector in many ways: the tools and operations of companies are evolving, and new kinds of online services are becoming possible. Solutions that meet the needs of new technology companies are needed alongside traditional services.
The digitalisation of services and advancements in large-volume information processing make it possible to collect and utilise ever-greater amounts of data, providing a more precise understanding of customer behaviour and needs. This naturally requires that customers feel they are gaining added value from the services and their pricing and that they trust in the necessity of using their data. The changes place demands on corporate information management, particularly regarding data security. Large-scale utilisation of information also requires significant investments from companies.
Mobile technology and mobility enable banking services to be used independently of time and place. Services can be provided through different kinds of networks. Interactivity and social media are also part of the sector’s operations. Innovations in technology and services can, and already have, brought new actors into the field alongside traditional financial institutions.
The growing number of web-based companies requires financial sector employees to understand the needs of intangible business. Compared to traditional industrial companies, for example, new IT sector companies need very different payment, financing and insurance services.