Driven by technological innovation, the global financial services market will see further structural change in the years ahead. That is why this segment offers the greatest added value for our shareholders. At Euro 4.5 trillion, insurance and financial services account for around 8 percent of global GDP and are thus one of the world’s most lucrative markets. Having said this, the financial sector is subject to strict supervision and regulation, a factor that often creates insurmountable barriers to entry for start-up companies. Not only that, financial products are often highly complex. This means that trust and branding are absolutely necessary – and these take time to acquire. That is why traditional banks and insurers were previously almost immune to digital competitors. Now, however, consumers are growing ever more accustomed to digital services. In the e-commerce sector, it all began with simple, standardized products such as books, but these days complex products such as travel, apparel and electronics goods are also being sold via the internet. Now the digital revolution has finally reached complex, trust-based goods, such as financial services. New technologies and changing client behavior are triggering a rapid and fundamental transformation in the financial and financial sales markets.
In our “Advisortech” segment, we are offering modern advisory and administration technologies for our clients and advisors in our Jung, DMS & Cie Group. Many sales operations and sales partners see technological change as a problem and view young fintech companies as competitors. We see the “technology” factor as a great opportunity. In future, the solutions offered by our “Advisortech” segment will help advisors to support their clients even more closely and thus generate higher sales. After all, in conjunction with our well-established “Jung, DMS & Cie” and “FiNUM” brands we see the “human factor” as absolutely indispensable in this trust-based business.
JDC Group is therefore developing proprietary technology-based tools to support its sales activities. It is also active in the market as a strategic investor in financial technology and advisory technology companies. The acquisition of established technology companies represents one conceivable component of the company’s strategy.