The financial consulting industry is constantly evolving with new trends emerging every year. As we look towards 2023, there are several financial consulting trends that BFSI institutions and fintech startups should keep an eye on. These trends will likely shape the financial consulting industry in the coming years, and businesses that adapt to these trends will be better positioned to achieve financial success. This essay will explore the top 8 financial consulting trends to watch in 2023.
2. Focus on sustainability
Sustainability is a much bigger concept and as much as we want to simply start using this terminology, we will use the most common terminology called ESG.
ESG = Environmental, social, and governance. These factors are becoming more important for investors, and financial consulting firms are expected to help companies incorporate sustainability practices into their financial strategies. This includes helping businesses to identify ESG risks and opportunities, developing sustainability strategies, and integrating ESG considerations into investment decisions. In addition, financial consultants are likely to be increasingly involved in sustainability reporting, helping businesses to report on their ESG performance in a way that meets investor expectations.
Environmental, social, and governance factors have become increasingly important in the financial world, and this trend is expected to continue in 2023. Here are the top financial consulting trends to watch for in 2023:
A. Greater emphasis on sustainability: Sustainability is becoming a key focus for businesses across all industries, and financial consulting firms are expected to place a greater emphasis on sustainability in 2023. This includes helping their clients to develop sustainable business models, reduce their carbon footprint, and adopt more sustainable practices
Financial consulting firms are also expected to help their clients evaluate the financial risks and opportunities associated with ESG factors, such as climate change, social justice issues, and corporate governance
B. Increased demand for ESG reporting: Investors and other stakeholders are placing increasing importance on ESG reporting, which provides information on a company's environmental, social, and governance performance. Financial consulting firms are expected to help their clients improve their ESG reporting, ensuring that it is accurate, transparent, and meets industry standards.
This includes helping clients to develop ESG policies and frameworks, collect and analyze ESG data, and report on their ESG performance in a meaningful way
C. Focus on ESG integration: ESG integration involves incorporating ESG factors into investment decision-making processes. Financial consulting firms are expected to help their clients integrate ESG considerations into their investment strategies, ensuring that they are able to identify and manage ESG risks and opportunities
This includes helping clients to identify companies that are leaders in ESG performance, assess the financial risks and opportunities associated with ESG factors, and incorporate ESG considerations into their investment models
D. Greater use of technology: Technology is becoming increasingly important in the ESG space, and financial consulting firms are expected to increasingly rely on technology to help their clients with ESG-related services. This includes using data analytics tools to analyze ESG data, using artificial intelligence to identify ESG risks and opportunities, and using blockchain to improve supply chain transparency
E. Increased demand for ESG training: As ESG factors become increasingly important, there is a growing need for education and training on ESG issues. Financial consulting firms are expected to offer ESG training to their clients, helping them to better understand the importance of ESG factors and how to integrate them into their business practices.
Financial consulting firms that are able to effectively integrate ESG considerations into their services will be well-positioned to succeed in 2023. Financial consulting firms that are able to help their clients with sustainability, ESG reporting, ESG integration, technology, and ESG training will be in high demand in the coming years.