The Internet hype appears to have given way to some overconservatism in the financial services sector, says IQ Business Group CEO Johan Roets.
Opening the IQ Business Group symposium on the new economy, held at the BDFM financial summit, Roets said this was evident at a new economy conference he attended in New York last week.
Among other things, a poll of 100 to 120 delegates at that conference showed that they believed the Internet could decrease business costs by only 5%.
However, he believes the apparent distancing from ideas of the new economy is an overcorrection.
Roets said the financial services industry has seen a host of new entrants to the market. Many of the newcomers have realised that the Internet is not the only tool for the distribution of products, and that they also need the requisite infrastructure.
There is a move to multi-channel distribution in the financial services space, evidenced by the JP Morgan Chase slogan - "Call, click, or come in".
Roets noted that with 1.6 million Internet users in SA, financial services companies need to understand the multi-channel concept.
He believes that consolidation has to take place in the South African sector, particularly in asset management and retail banking.
"There should be some innovative transactions in the near future, with some cajoling of the regulator," he added.
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