Change Within Financial Institution

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Management of Financial Institutions

School of Accounting, Economics and Statistics
Table of Contents
| | Page |
Introduction …................................................................................ | | 3 | Definition of change within Financial Institution …......................... | | 4 | Reason of customers' attitudes change and the impact to financial services sector….............................................................. | | 5 – 7 | Consequences of not follow customers change …........................ | | 8 | Respond within financial institution sector …................................ | | 9 – 11 | Conclusions …............................................................................... | | 12 | Reference ….................................................................................. | | 13 |

IntroductionIn the following sections, we would like to evaluate the extent to the ways in which customers' attitudes towards and expectations of the financial services sector have changed in recent years and the ways in which organisations within the sector have responded. In particular, the below objectives will be achieved: Influences of the business environment and competitiveness of the financial services sectorChanges of customer attitudesRespond of financial organisation Practical situation within financial services

Definition
Change is something that affect all of us at different times and in different ways. People's general approach to change is usually worry about it and find it quite difficult to deal with. The level of worry depends on how the change or changes affect us and the deviation from the expectation and final result. In Hong Kong, financial services sector markedly changed over the past twenty years, thus, change has become a fact of life. Historically, financial institutes have had to change to maintain and development their competitive position, both domestically and internationally, to meet the challenges and opportunities of technological innovation and to face with the ways in which society and the people in society have changed.

Reason of Customer Change
To have a more detailed look at the impact of the customer change, we are taking into account of a strategic management concept of “PEST” analysis where the institute looks at the Political, Economic, Social and Technological factors influence the sector. Political

The political environment covers the government and also local authority government and many public bodies. They determine the directions, policies and actions of the government process within which the financial business environment has to operate. In 1995, the Mandatory Provident Fund Schemes Ordinance (MPFSO) was enacted, supplemented by subsidiary legislation passed in 1998, 1999 and 2000. The MPF System was launched in December 2000 that make attitudes toward the source of financial support for retirees changed. Thus, people aware the important of retirement planning, wealth management and start planning, saving and investing for retirement much earlier and learn about financial planning. Nevertheless, the lack of financial planning knowledge among in public was highlighted in a survey entitled 2009 Retirement Life of Third Agers. Two-thirds considered their financial planning knowledge is inadequate for management their own pension assets. In view of above, SFC (The Securities and Futures Commission), an independent statutory body responsible for regulating the securities and futures markets in Hong Kong, promotes awareness of investor and educate public to protect on their rights. SFC have issued codes and guidelines to inform industry of its expected standard of conduct, e.g. guidelines of “Know your customer”, “Mis-selling financial products”. Meanwhile, they offered an on-line platform named “InvestEd” which provides...
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