Current Challenges of Industry Essay
Current Challenges of Industry
My area of interest is finance with special interest in banking. I will therefore highlight and discuss the current challenges in banking sector. Firstly, as competition among banks grows speedily, there is a challenge of keeping the initial customers and maintaining a high inflow of new customers for a bank to live. There is a need to provide a customized, cost effective and highly friendly service to customers.
secondly, banking sectors needs adequate funding to be able to function as expected, the current world recession has affected many banks in which many are now laying off their staffs to be able to conserve some money to run the banks since their is a minimum amount a bank must posses before it will be allowed to continue functioning. Thirdly, banks are facing the challenge of adapting to the present sophisticated technology.
although there are many benefit accrued to the introduction of technology which includes fast customer services, reduction of stress as customer can now use information technology to do banking services, however, the challenges includes the cost of setting such new technology, integration of the existing system into the new ones and there are many security issues on the innovative technology. Moreover, financial banks are know for giving loans and credits to both companies and individuals.
One of the challenges faced by these financial banks is the reduced ability of their customer to pay up their loans and credits due to the current financial setback and recession, thereby reducing the cash in flow to the banks from this source. In conclusion, for a bank to survive in this current state of competition and recession, it must have a greater professionalism, lay more emphasis on diversification, have a good consultancy services.