Usually described as resistant to change and quite conservative, financial sector has no choice but to follow other industries in their digital journey. Well-established, traditional banks have been challenged by financial technology start-up companies that take over industry by combining digital technology, social media, and big data analytics to replace traditional models with financial products and services enabled by new technology.
So, as disruptive changes occurring in the financial services industry are largely the result of digital technologies that have been developed and refined over the past decade, it comes as no surprise that in order to survive, and stay competitive the financial services industry and its CIOs are increasingly embracing Digital Transformation to improve their IT infrastructures.
With people relying increasingly on online and mobile banking, which can provide customers with an improved ease of access, ease of payment, and most importantly - speed, the race is on for banks, credit unions and other financial services organisations to turn to Digital Transformation.
For banks and credit unions, Digital Transformation often involves devoting resources to the mobile consumer experience. It can be done by pursuing projects, such as app upgrade, which would aim to release a revamped, customer-facing mobile app, designed to be as smooth and as quick as possible. Also, scaling up infrastructure to process more transactions, and eliminate downtime can be considered one of the main objectives of Digital Transformation.
As for capital markets firms, Digital Transformation efforts are often focused on data analytics and high-performance computing, as organisations try to leverage Big Data, and automation to shave every possible millisecond off transaction times.
But, how exactly is Digital Transformation reshaping financial Services? Let’s look at it on more depth.
All kinds of digital technologies ranging from smartphones, social media, and tablets to wearable devices can offer an easy and effective way for banks to strengthen and improve relationships with their customers.
People now expect services to be available 24/7 rather than just during traditional business hours. Moreover, customer interfaces on any device must be easy to navigate and understand for everyone, they also must be visually appealing so that customers are attracted to them, and as a result want to use them. But, in order to meet these constantly changing demands, organisations in financial sector must maintain back-end databases and analytics engines to deliver accurate, responsive intelligence on customer needs and preferences. And taking advantage of Big Data is what can help banks address many of these industry challenges.
Mobile Applications are the future and if your bank doesn’t have one – you need to act now! People are not going to visit bank branches anymore and we can’t blame them. The British Bankers’ Association (BBA) projects that by 2020, customers will use their mobile devices to manage their accounts 2.3 billion times a year—more than internet, branch, and telephone banking combined. This is why banks must develop and establish an effective mobile strategy to support financial institution operations. Even though, it is a long and complex process, it needs to be done now.
Also, when talking about Digital Transformation in banking, back-end system capabilities cannot be omitted. No matter how appealing an application’s user-facing display maybe it has no value without back-end operations. These may include storage, database transactions, analytics, and others, and they ultimately determine the value of a financial services application. And remember, the most demanding compute transactions take place in back-end systems so you must make it perfect.
Another way of reshaping financial services is the power of open source. The open source development model enlists contributions from a great number of developers around the world and it was created to directly address vital IT needs. This vibrant community is essential for any bank! It offers more responsive maintenance of the security, reliability, and interoperability of application code and operating systems. Open source technology can help financial institutions gain access to the latest patches, updates, and security protections—often within days of discovering an issue, rather than weeks or months.
All these transformations that are reshaping the financial services industry offer banks and other financial institutions opportunities to adopt technology that can increase their competitiveness and agility.
By applying this technology intelligently and in the right way, financial institutions are more than likely to dramatically improve customer experiences and build responsive, effective data management platforms.
But it is essential to remember that technology alone cannot solve the challenges of modern financial markets. However, it can help organisations improve services, personalise customer interactions, and develop innovative products and solutions.
B60 is a global leader in delivering Digital Transformation and Technology Development and works with ambitious firms in the U.K. Europe and USA across multiple sectors. Since 2012 B60 has been embracing digital change by utilising our unique operating models, frameworks and methodologies to truly drive innovation and change from within our clients businesses.
If you’d like to discuss with one of our experts on how you could successfully deploy Digital Transformation and Technology Development in your business drop us an email at firstname.lastname@example.org or alternatively call us on 0121 405 0270.