Financial Services and Opportunities for Change
Financial companies with real estate portfolios faced some interesting headwinds in 2023. Some of these challenges included inflation, changing customer needs and increased regulation. According to JLL, none of this is going away in 2023. But the current environment can help drive solutions to help ensure sustainable growth.
Or, as JLL President, Financial Services Bobby Mangano put it, “If 2022 was a year of experimentation in understanding the new phase of omnichannel for customers and the hybrid working environment for employees, then 2023 is a year of implementation.”
Specifically, JLL experts suggested five solutions to help financial institutions weather what the coming year might bring.
1. Net-Zero Emphasis
Organizations should have a positive impact on the environment. This will be important in 2023, especially in the face of new regulatory requirements and their impact on commercial real estate climate measurements. Additionally, JLL experts note that “continued portfolio optimization presents an opportunity for financial institutions to decrease their carbon footprint.”
2. Innovation to Counteract Downturns
Increasing digital and technical demands mean financial companies should focus on operational efficiencies. This calls for innovation strategies and attracting top talent to help in areas including cloud computing, machine learning and programming.
3. Work and a Human-Centric Approach
A human-centric approach in the workplace isn’t new. When it comes to financial firms, however, collaboration and innovation can help support the upcoming changes when it comes to work. “While workplace strategies will vary across functions, the financial services organizations that center the workplace ecosystem around the employee experience will influence performance and growth as well as attract and retain talent,” said Giles Wrench, vice-chairman, Financial Services, JLL.
4. Omnichannel Customer Focus
Omnichannel is popular in retail. It’s also becoming important in financial services. As such, ensuring the balance between physical locations and digital channels will be important. Mangano noted that while the pandemic did drive digital banking optimization, “rapidly evolving customer needs for hyper-personalization reveal the value of a physical presence in the customer journey.”
5. Location Footprint Diversification
Speaking of physical sites, there’s also a focus on diversification beyond traditional hubs. Specifically, hubs that “encompass multiple divisions of the organization” can help boost employee mobility, while also driving hiring and retention. This strategy can also help improve cost and operational efficiencies, while improving the customer experience.