Austria will become one of the most advanced countries on the sustainability and environmental fronts. Austrian financial services firms can additionally profit from boosting this agenda through their CEE positions.
This is a short version of the article ”5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” and focus on the 5th of 5 predictions “Austria will become one of the most advanced countries on the sustainability and environmental fronts. Austrian financial services firms can additionally profit from boosting this agenda through their CEE positions”
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2020 was a rollercoaster for all of us, but “Life is a rollercoaster, you just gotta ride it!” Therefore I would like to invite you to have a look into the crystal ball, as it is important to position for the post-covid period.
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The entire article “5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” is available here.
Let’s have a look into the crystal ball
What will the Austrian financial services market look like in the next couple of years? And will today’s major Austrian financial players remain prominent in the future?
So far, the outbreak of Covid-19 truly showed that we are living in a volatile, uncertain, complex and ambiguous (VUCA) world.
What is known is that the global pandemic is acting as an accelerator for global trends:
- Demographic change: population growth, young vs. old countries, old vs. young generations, migration, urbanization, war for talent, etc.
- Digital transformation: data and analytics, automation, connectivity, omnichannel approaches, user and customer experience, accessibility anywhere / anytime, etc.
- Technology and innovation: exponential growth and agility of tech, artificial intelligence, security, adoption in ‘social service’ models, evolution of communication channels, blockchain, Open Banking, etc.
- Sustainability: scarcity of resources, ownership of responsibility, climate change, etc.
Beyond this, we know that it creates opportunities as well as disruptions.
Based on recent market developments and global trends, below are five predictions for how the Austrian financial services market will evolve over the next four to five years[1] and how those predictions are impacted by the global pandemic.
5th of 5 predictions
Austria will become one of the most advanced countries on the sustainability and environmental fronts. Austrian financial services firms can additionally profit from boosting this agenda through their CEE positions.
- EU initiatives such as the action plan: Financing Sustainable Growth (May 2018) and the European Green Deal (December 2019) are changing regulatory frameworks and market behaviour.
- Commitment to improve the environment and combat climate change will shift from corporate social responsibility to the risk management agenda.[2]
- Fundamental initiatives towards sustainability (e.g. operational changes) will support companies in the war for talent.
How is the prediction impacted by the global pandemic?
Sustainable finance will emerge stronger from Covid-19 rebalancing. The term ESG (Environmental, Social & Governance) was well discussed by several consultancies, incumbents and start-ups active in asset and wealth management during 2020.
Initiatives on EU level continue to shape the market. Notably, climate protection is a huge agenda item from a regulatory perspective, and it will impact more than the asset & wealth management business. The demand for sustainable and zero free emission products and services for both retail and corporate financial services businesses will rise.
In view of ongoing regulation, it is more than ever important to set up appropriate processes and systems for the management of climate risks and their disclosure. The EU is expected to release its revamped sustainable finance action plan in early 2021. This will chart out the next wave of measures, including proposals for a green bond standard and an overhaul of the Non-Financial Reporting Directive, which sets climate disclosure standards for large companies.[3] In addition, other global initiatives like TCFD (Task Force on Climate-related Financial Disclosures) are shaping industry standards.
Austrian incumbent financial services players and their interconnection with the local country-specific start-up ecosystems have a unique position within the CEE market. There is a huge responsibility and, at the same time, opportunity to position themselves for a better future and circular economy at large scale.
Entire article
The entire article “5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” is available here.
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About
This is an updated version of the article “Five predictions for the Austrian financial services market and its CEE footprint”, which was initially authored by Tobias Schaller and published with Capco in February 2020.
Since summer 2020, Tobias acts as an independent trusted advisor via his own consultancy mosaikProjects.
The update provides insides based on latest available data and recent market activities and reflects the five predictions in light with the global Covid-19 pandemic throughout 2020.
References
[1] The predictions were initially authored by Tobias Schaller and published with Capco February 2020.
[2] www.rmmagazine.com/2019/03/01/taking-action-on-climate-change
