Market Opportunity Analysis for the Financial Services Industry
The financial services industry is witnessing unprecedented changes as it moves towards digitalization. However, with digitalization and high-speed innovations opening up new opportunities for financial services companies, security threats, and data breaches have started coming to the forefront. Apart from these risks, rising customer expectations, increasing pressure from competitors, inefficiency in meeting investor expectation, and regulatory conditions are presenting challenges for companies in the financial services industry. As a result, it is becoming imperative for financial services companies to conduct a market opportunity assessment before entering a new geography or region.
Entering a new market without a thorough knowledge of the market can be challenging. Request a FREE proposal to know how our market opportunity analysis can help businesses assess potential market opportunities and understand the competitive landscape.
Business Challenge
The client is a financial services provider based out of the Northeastern United States. As the Canadian financial services industry had healthy levels of capital adequacy and liquidity, the client wanted to expand their business operations to Canada. However, before expanding, the client wanted to conduct a market opportunity analysis to understand the Canadian financial services sector landscape and identify industry challenges. The client, therefore, approached Infiniti Research to leverage their expertise in offering market opportunity analysis solution.
The top challenges faced by the company were:
Regulatory condition – The ever-changing regulatory environment posed major challenges for companies operating in the financial services industry in Canada. This further necessitated financial services companies to spend a large part of their discretionary budget on compliance. Therefore, with Infiniti’s market opportunity analysis, the client wanted to thoroughly understand the regulatory conditions in the Canadian financial services industry. By doing so, they wanted to focus on building systems and processes to keep with the regulations and industry standards.
Open banking system – Open banking system had a profound impact on consumers in Canada. Moreover, over 60% of Canadian financial services companies had already incorporated open banking model in their strategic business plan. Therefore, with market opportunity analysis, the client wanted to identify all the profitable business models adopted by major companies.
Increasing popularity of FinTech companies – The increasing popularity of FinTech companies have brought about major challenges for traditional financial services companies in Canada. With Infiniti’s market opportunity analysis, the client wanted to analyze the competitive landscape before investing huge capital into the Canadian financial services industry.
Finding the right talent – For smoother expansion into the Canadian financial services industry, the client wanted to find the right talent to meet the demands of the digital world. Therefore, with Infiniti’s market opportunity analysis, they wanted to find the right business partners to support their operations in Canada.
To devise a robust market entry or expansion plan, businesses require detailed insights into the new market, competitors, customers, and regulatory environment. Our market opportunity analysis can help you gain detailed insights into the new market and assess the markets’ readiness for new offerings. CONTACT US today!
Solutions Offered and Value Delivered
The experts at Infiniti Research followed a detailed five-phased approach to market opportunity analysis.
Market sizing – In this phase of engagement, the experts at Infiniti Research analyzed factors such as market structure and size, barriers to entry, and financial services industry trends.
Competitive landscape – In the second phase of the market opportunity analysis engagement, the experts at Infiniti Research identified the key players in the Canadian financial services industry and their market share. Also, factors such as competitors’ business strategies, pricing plans, and market position were taken into consideration.
Consumer insights – This phase of the market opportunity analysis engagement involved identifying customers’ needs and expectations regarding financial services. Also, the experts identified the unmet customer needs.
Regulatory assessment – In this phase, the experts analyzed the current regulatory landscape in the Canadian financial services industry. Also, the experts monitored how key players adapted to the regulatory changes.
Resource analysis – The final phase of the market opportunity analysis engagement included the identification of the right business partner to support the client’s business operations.
Infiniti’s market opportunity analysis helped the client to analyze market potential in terms of market size, structure, and trends. Also, the engagement highlighted key barriers to market entry. The insights obtained from Infiniti’s market opportunity analysis helped the client to understand the competitive landscape in the Canadian financial services industry. The financial services provider was also able to identify unmet customer needs and demands. In addition, the client was able to understand the regulatory landscape and build processes to keep up with the regulations and industry standards. The insights obtained from Infiniti’s market opportunity analysis further helped the client to devise a robust market entry strategy.
With Infiniti’s market opportunity analysis solution, the company in the financial services industry was also able to identify the right business partners and collaborate with FinTech companies in Canada to support their business operations. Moreover, the client was able to embrace open banking systems and other business models that are gaining popularity in the Canadian sector.
Furthermore, by having complete insights into the new market, the client was able to successfully establish themselves in Canada. Also, within three years of entering Canada, the client was able to achieve savings of over $8 million.
Our market opportunity solutions have helped various global giants to identify potential market opportunities and yield huge profits. Request for more information to gain detailed insights into our services and their benefits for your business.
Top Trends in the Financial Services Industry
Want to gain detailed insights into these trends? Read the article here.
Request a FREE brochure to gain more insights into our services portfolio.
