If Financial Services organisations fail to change and align with their customers, their future is in doubt. Time is short. There is over capacity in many parts of the industry. There will be major fallout following rationalisation. In all areas 'over promise and under delivery' is too commonly received by customers. The industry still suffers from miss-selling and misrepresentation. Customers are not stupid. The average customer profile has changed from the trusting 'baby boomer' (40-55 year old) to 'Generation X'(25-35 years old) and recently 'Next'ers' (16-25 years old).

With the change in customer profile and life-style, has the industry, its products and its channels and method of delivery changed to meet these changes in customer perspective?

The industry is now dealing with informed and critical consumers. The consumer, policy-holder or lender no longer trusts the third party intermediaries or, in many cases, the provider of financial services. Consumers are generally more aware of companies that genuinely provide 'value added' services' and differentiate these from those who 'flatter to deceive'.

Companies that fail to grasp that Generation X' and Next'ers owe no loyalty to companies, apart from what they receive currently and consistently, are in for a major shock with developing a long term commitment to their business. Customers are now more discriminating than ever. Knowledge of the market is greater than ever before. Organisations will now have to develop strategies to earn loyalty to their business. Major trends that will differentiate winners from losers in the next decade include:

• De-mutualisation - can organisations focus equally upon the shareholders/stakeholders without detriment to customers?

• Can the industry cope with the variety of customer profiles from 'Boomers' (high achievement and material acquisition) to 'Next'ers'(balance in life).