Financial Services: Future of Innovation Hubs
Designing and implementing a tailored real estate strategy to fuel transformation within banking and financial services
- Sarah Bouzarouata
- Amber Schiada
In today's rapidly evolving financial services industry, organizations are realizing the importance of innovation hubs to drive growth and stay competitive. These strategic hubs bring together top talent and resources, foster cross-functional collaboration, and provide cutting-edge technology to support experimentation and product development.
What elements define a banking and financial services innovation hub?
It’s a centralization of talent and resources that features top-tier physical design and cutting-edge technology.
Why is there a need for financial services organizations to transform and elevate the innovation model?
As the industry undergoes significant changes in business operations, a reshuffling of the labor market composition is inevitable. Projections indicate that approximately 26% of the current workforce in the industry will experience movement over the next four years, encompassing both the creation of new roles and the destruction of existing ones.
With global competition for talent and innovation intensifying, which cities are ahead?
As the financial services industry embraces innovation, occupiers will be confronted with a more geographically distributed innovation ecosystem. Although global leaders are increasingly challenged by higher costs, they still dominate access to capital critical for innovation. Over the past three years, more than 43% of venture capital funding has been deployed in the Bay Area, New York, London, Beijing and Shanghai. Players in the innovation ecosystem will need to maintain their presence in these cities. In the US, AI hiring by the largest banks are escalating:
By centralizing expertise and creating agile and collaborative spaces, financial institutions can cultivate a culture of innovation and explore new technologies, ultimately propelling their organizations into the future.
This report explores in more detail:
Key catalysts driving innovation hub transformations
Recommendations for how to elevate the future innovation hub
Download this comprehensive report to better understand how these interconnected levers in the CRE portfolio can empower banking and financial services organizations to successfully navigate and drive transformative change.
