The transition from traditional banking to the provision of modern financial services

Abstract

This dissertation presents a comprehensive analysis of the developments that took place within the international financial environment over recent years and their effect on the banking industry. The material encompasses an in-depth focus on the changes that occurred within the Financial Service Industry (FSI), outlining the ongoing developments within the local financial scenario. Globalisation, de-regulation and advancements in technology have been the main strategic drivers behind the changing financial milieu. This has in-turn resulted into increased competition between commercial banks and financial institutions, and has increased competition within the market for financial services. As a result, banks are increasingly turning to new, non-traditional, financial activities as a measure to secure their profit levels and remain competitive. In the final part of the dissertation I will analyse the effects of the above-mentioned developments on the banks' strategy, giving prominence to the banks risk exposure within the modern financial era. To end with, the dissertation will deposit forward recommendations that emerge from this analysis.