Marketing Environment of the Financial Services Industry - Case Study Example

News Portfolio Marketing Environment of the Financial Services Industry The Dubai International Finance Centre (DIFC):Amending Law No. 7 The DIFC is the first UAE’S monetary free zone with determined targets to advance Dubai’s economic accretion and improve dependence on oil revenues. This is through diversifying and enhancing the expansion of banking and pecuniary sectors. It is the monetary and business entryway between regional, upcoming and global markets and contributes considerably to the UAE’s nation building objective. The new Amending Law does not alter the responsibility of the DIFC; rather its configuration is being enhanced to further the initial targets and clarify authority processes. Modification of this law recognizes the comparative development of the DIFC and strengthens its autonomy from onshore legislators. These legislative alterations with regard to DIFC examine what can be anticipated in terms of future regulations inside UAE financial services segment. This will significantly aid in encouraging business in the area. The significant bodies of the DFIC are maintained which have distinct pecuniary units with independent budget lines. The new amendment also clarifies the governance and executive structures of the three significant bodies. The new duties are to instigate, standardize and develop an independent payment structure in connection with the UAE fundamental Bank to advance massive wholesale disbursement, including multi-nation, and currency clearance deals. It clears the capability to clear and mend payments and to implement a structure accordingly (Campbell, p. 1). Current havoc in financial markets with regard to the sub-prime financial catastrophe calls for the integration of chattel liquidity into contemporary risk management components. The definitive target is to execute advanced financial modelling elements and sound regulations for the monetary, service industry in the UAE. The Amended Law indicates further advancement of the DIFC and Dubai as a retreat of tranquillity, order and superb governance. The DIFC society and stakeholders promote this amendment since it aims at enhancing the legislative obligation to subsidize DIFC’s contribution to global financial services sector as might be necessary to sustain effectiveness, transparency and veracity. 2 Global Financial Services Industry Leverages on enhanced De-risking Strategies The comprehensive international outlook aims at changing the financial services sector. Rapid recovery has been recorded in varied sections such as banking and coverage from the present economic meltdown. This is expected to guide the international monetary services in the short or medium terms. Transaction safety, operational effectiveness, regulatory conformity, business stability planning, re-engineering, client service and business peril management will probably advance market development in the approaching years. The financial services segment is significant consumer of varied business services and items. It is an economic authority that drives other enterprises undertakings, setting principles as it provides the monies required to advance these enterprises. It is the spotlight of other sections of the market. It is a sector significantly susceptible to market alterations. The initiation of niche players enhances the sector, although, there have been declines in the number of financial affiliations. The emergence of non-financial institutions into this sector is significantly altering the sector. Escalating competition and flooded markets has forced massive actors in the global banking sector to explore upcoming markets. These changes in the financial segment will significantly increase profits, improve clients’ confidence and advance the entire business progress (GIA, p.1). Consolidation has been extremely significant in the financial services segment in present years. These structural alterations in the sector have produced the liberal strategic turbulence that has challenged senior administration associations and boards of financial organizations, insurance institutions, chattel managers and security organizations. The impetus entails improvements in a transaction and data machineries, regulatory alterations and geographic modifications in advancement opportunities. In addition, these drivers include the rapid progression of customer requirements, which have compelled most financial institutions to restructure their duties as mediators. These myriad advancements are optimistically impacting the market in the banking segment. The abundance of online banking, phone banking and increased utilization of social media has improved this industry while attracting novel clientele. This has significantly increased clients’ confidence and will considerably advance the sector. The financial sector reconfiguration will probably hasten as a consequence of the international market instability. This is following the administration’s compelling or persuading combinations of prominent and emerging financial institutions in a quest to handle the crisis. This process will make financial institutions emerge with massive market shares. This advancement is extremely healthy for the financial structure going ahead. As the monetary markets continue to progress, financial organizations work to advance and sustain profits while adjusting to the ever-changing legislations and the downturn’s impacts on productivity and performance. Thriving organizations will require reconsidering their operating structures and tackling the impacts of regulatory changes, competitive dynamics, changing markets and increasing prospects from stakeholders (Ingo, p. 2). 3 Contemporary customers are becoming considerably demanding in their wants, particularly with regard to financial products. It is paramount to have excellent products that lure and maintain valued clients; however, this is not enough in a significantly competitive sector. It is crucial to consider novel items and their sustainability. This initiates competition between financial organizations so as to increase their market coverage through varied products or advancement of old products. Financial products describe tools that assist an individual save, invest obtain coverage or a mortgage. These products are usually obtained from financial organizations, coverage providers, government entities or stock brokerages. They are classified in terms of their principal chattel class, instability, peril and profits. Macquarie Group in the UAE Macquarie Group is a renowned provider of monetary, banking, advisory and investment services. This includes provision of information with regard to shares, bills, bonds among others. This Group provides a lot of data on its website with regard to its undertakings. It operates in nations where it is certified to do so. These financial services provide a myriad of opportunities, proper practices, business structures, customer centricity and standardization. The Macquarie organization describes itself as an institution with committed individuals in financial sales provisions. This organization promotes fixed earnings, currencies and products to the MENA area, with a spotlight on the UAE and Oman. It also concentrates on selling these products in Qatar as well as Kuwait. The main players reside at Dubai and markets perils administration resolutions transversely a variety of commodities. In addition, these commodities include derivatives such as in foreign currencies and those of interest rates. There also investor commodities and structured investment. This organization prides itself for being awarded the fourth group certificate from DIFC permitting it to function as an authorized unit from inside the DIFC (Sundarajan and Errico, p.1). Citi Group in the US It is an American domestic monetary services institution that provides these services locally. These two financial organizations are similar in the sense that they are dedicated to the provision of financial services to their clientele. They both promote fixed earnings and currencies. They offer monetary, advisory, banking and investment products. 4 The embargo of riba disallows traditional bonds. However, the Sukuk bond is acceptable. It is asset supported, and the earnings on it are static, but connect to the income on the assets bought with the profits of the issue. These capital based bonds of average term maturity are global and are distributed by independent or corporate organizations. This product has the benefit of aggressive pricing as a peril resolution system. Qatar advertised its Sukuk international bond with seven years of the term, and it was extremely profitable. The marketing milieu is extremely favorable due to the growing GDP and increase of the purchasing power of the people due to augmented employment rate (Pcully, p.1). 5 Deutsche Bank in Abu Dhabi Deutsche Bank has a new auxiliary branch in Abu Dhabi. It is focused on assisting the bank’s commercial and organizational customers. It is a financial organization that highlights the strategic standpoint of international financial affiliations towards the positive business milieu and the competitive atmosphere that the UAE provides. It serves to buttress the economic bonds between the UAE and other nations such as Germany. It showcases the varied opportunities that the UAE provides, locally, internationally and regionally. It also emphasizes on the strength of the UAE economy, vivacity of its divergent sectors and its capacity to react to regional and international calamities. In addition, this bank aims at servicing the local populace as well as the worldwide and regional organizations operating in the region (Budeiri, p. 1). Trend The recent economic revitalization in the UAE is obtaining strength, promoted by a favorable international revolution. This revitalization process, however, makes the UAE region prone to have increased regional improbability. Economic accretion fosters tourism, logistics as well as trade in the region. Hiked oil prices are also generating the remarkable advancement in the monetary and external ranks of the nations. Inflation rates are anticipated to maintain a 4.5% in the nation in spite of in food prices globally. Chattel rents continue to diminish, and the unemployment rate is extremely low at 4.2%. Nonetheless, the country’s economic revitalization remains at jeopardy. This is with regard to probable economic impacts of regional occurrences. This is particularly the present re-pricing of the geopolitical peril in the UAE which could result to extremely confronting market situations. This might put pressure on the institutions that require obtaining exterior borrowing. There are predictions that the UAE’s GDP will advance by 5% in 2012, with regard to the anticipated growth of 6% in upcoming economies. Trade will also advance, and the UAE will be the most significant commercial centre worldwide. As the marketing director of Deutsche bank, I would this as extremely essential elements for the growth of the bank. When the economy is thriving, the institution will advance. This is with regard to the company’s market share rising. Consequently, this will result in business expansion. The advancement in trade operations will significantly provide an opportunity to extend the company to utilize the economies of scale. This will also assist Deutsche bank extend more globally and foster investments from the populace. Economic accretion in the UAE will promote a superb marketing and commercial environment for the bank. The high purchasing power as a consequence of varied individuals being employed will encourage investing. Additionally, it will be an opportune time to advertise on the company’s services to capture a massive market. Works Cited Budeiri, Dana. Deutsche Bank Opens Branch in Abu Dhabi. Deutsche BANK AG, 2010. Campbell, Fiona. The Dubai International Financial Centre: Legislative Changes Regarding the DIFC. Al Tamini & Company, 2012. Global Industry Analysts. Global Financial Services Industry Leverages on Improved De-risking Mechanisms and Cost Reductions. PRWEB, 2012. Ingo, Walter. Economic Drivers of Structural Change in the Global Financial Services Industry. Elsevier B.V., 2012. Pcully. Islamic Banking Products. Word Press, 2006. Sundarajan, V.& Errico, Luca. Islamic Financial System Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead. Imternational Monetary Fund, 2002. Read More