Why is distribution more complex in financial services than in other industries?

Financial services products are heavily regulated, involve deferred value, and transfer risk, making them inherently more complex than consumer goods. Products often require multi-step transactions, formal approvals, and detailed disclosures. Channels include direct digital, branches, advisors, brokers, and partners, each with different operational and compliance demands. Human intermediaries remain critical where complexity, trust, and advice needs are high. Cross-channel coordination and incentive alignment are essential to avoid cannibalisation. Consulting sources highlight distribution as a primary driver of cost-to-serve and customer experience (McKinsey, 2022; BCG, 2023). Academic research emphasises intermediation and trust in financial markets (Journal of Financial Intermediation, 2019).