The Current Market Trend Of Banking & Insurance Of North America

The current market trend of banking and insurance of North America shows that market is booming for several years since the economy of Canada is strong due to the large amount of foreign investments. By conducting the online survey it shows that both sectors will face a slower growth in coming years due to Fintech and housing market slowdown. The key success factors that all banking and insurance companies must take to ensure successful operation are mentioned below such as best rates,quality,Product innovation, Brand image.

The banking and insurance industry has developed in a great manner in Canada due to the the strong and secured economic system of Canada till 2018 the number of banks in Canada are 86,number of ABMs across Canada are 18,640,number of logged in ABM are 643 million, tax paid by banking and insurance company in 2017 are 12.2 billion, banks contribute approximately 3.3% to Canada’s GDP,275,825 Canadians are bank employed, percentage of Canadians who do most of their banking transactions digitally using online and mobile banking are 68 %,banks have more than 1 million financing relationships with small and medium sized business across Canada. From the 60 minute webinar conducted by Michael and Richard (Famous Economists) outline the key factors shaping the outlook:

• Interest rates: Canadian interest rates were rising since July which boosts the ground level of both banking and insurance sectors. Rising rates are good for bankers because It will weigh on housing affordability for medium term.
• Fintech: due to the emerging of large number of fintech firms, the Canadian banking and insurance sectors has developed numerous numbers of digital innovations which makes banking sectors more users friendly. Most of those digital products are made by collaborating with students in top universities.
• Catastrophes: unpredictable weather and other catastrophes may lead to the market destruction and can increase claims greatly for insurers.

The key success factors (ksf) that all companies operating must take to ensure successful operations are:

• Best rates: banking and insurance is attracted by low cost. To survive in the banking industry giving the product and services at low price is very important like low transaction rates, ATM network charges, Insurance premiums.
• Quality: Quality includes all the aspects of quality which is provided to the costumers. Like maintaining a good relationship with customers by maintaining a good customer service via mail and phone.
• Product innovation: it very important to survive in financial field since all the banks are providing similar products so that offering innovative and user friendly products is a mandatory factor for future survival.
• Brand image: Brand image is the main factor which effects the growth or fall of any banking industry. Brand image should be created through providing good customer service, providing brand commercials.