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Closing the Gaps

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Closing the Gaps

Financial Services Needs of Next-Generation Companies

World Economic Forum,

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How can the next generation of innovative companies grow when it lacks access to financial services?

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The explosive growth of “next-generation companies” (NGCs) has revolutionized the industries in which they operate. However, financial services have yet to adapt to the new reality these burgeoning firms present. Ranu Dayal of the Boston Consulting Group and Boripat Louichareon and Isabella Reuttner of the World Economic Forum have compiled data and original research to figure out how best to meet NGCs’ financial needs. getAbstract recommends this report to NGC executives, financial services providers, and policy makers and regulators, all of whom have a role to play in improving the financial environment for NGCs.

Summary

High growth rates, global mind-sets and innovative business models characterize “next-generation companies” (NGCs). Diverse by nature, NGCs can be of any size or exist in any sector. However, they share numerous similarities: NGCs are agile and flexible; they grow and change rapidly; and they are not limited by legacies or traditional business practices. Moreover, they tend to lack access to “financial services and products aligned with their needs and capable of helping fuel their continued growth.”

NGCs report that, at home and abroad, “transaction products,” ...

About the Authors

Ranu Dayal is a managing director at the Boston Consulting Group. Boripat Louichareon is a project manager at the World Economic Forum, where Isabella Reuttner is an associate director for financial services industries.


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