What tech solutions are available to tackle the challenges facing the financial industry?
The financial industry is experiencing a significant shift driven by new technologies. Many business leaders are continuously looking for techniques to improve their performance and introduce new, efficient solutions. With the rise of new technology comes new challenges for the finance industry.
Being prepared for cyberattacks
Financial businesses are particularly vulnerable to cyber attacks due to containing large volumes of very sensitive customer information. As one report shows, financial businesses are generally liable to cyberattacks more so than other industries. Compromised credit cards, leaked information or malicious banking processes have forced businesses to utilise and embrace new technologies and protect their organisation from very expensive challenges.
By implementing advanced technologies businesses can greatly improve their security measures and greatly reduce potential cyber-attacks and the associated expenses. Security represents a top priority for financial businesses due to the accelerated rise of professional ‘attacks’ in the last couple of years. Business can utilise new verification services, a fraud prevention system that verifies user information. End-to-end encryption enables no external group to access certain sensitive information.
Maintaining a connection with new technology
Recent studies suggest that financial businesses need to continue investing in robotics and other automation tools to enhance their effectiveness and reduce costs linked with operational processes, risk management and compliance. Businesses need to upgrade their internal systems and data facilities to utilise the benefits of big data solutions, such as AI-focused support assistants.
Exploring robotics can allow financial industry businesses to replace traditional, manual services with automated processes, improving productivity, accuracy and compliance. Businesses need to be prepared to embrace new technologies such as robotics and artificial intelligence, machine learning and NLP.
Keeping your business compliant
REgulations, compliance and laws are a constant challenge for the financial industry. The pressure to remain authorised and compliant relates specifically to the rising regulation fees that emerged from the global financial crisis back in 2008. Today, multiple regulations have driven financial businesses to streamline their processes.
Implementing regulatory technology to stay compliant enables businesses an efficient management and risk assessment process for organisations. RegTech is generating added value for a company seeking to streamline processes associated with regulatory compliance. RegTech businesses provide ‘know your client’ and anti-fraud services, tax data management services, real-time reporting and regulatory compliance assessment tools.
The challenge of meeting customer expectations
Today’s customer is tech-savvy and generally expects high-level custom features within their banking services. Younger customers typically have a better understanding of technology and as a consequence have higher expectations of their digital experience.
Generation Y, people that fall between the ages of 22 to 38 are responsible for nearly 50% of mobile banking users and have the biggest impact on the digitisation of financial services. To be capable of meeting the needs of both the older and younger customers simultaneously, financial organisations need to create a hybrid banking model that combines digital experiences into a traditional banking environment.
Financial businesses can continue to succeed and have a considerable advantage over their competitors if they continue to embrace digital technology. With a combination of AI, robotics and regulatory technology, businesses can continue to innovate and manage the challenges faced in finance, while continuing to remain compliant and keep progressing.
A final factor is maintaining a close consideration of customer satisfaction. To maintain the highest level of customer satisfaction, financial businesses need to incorporate a blend of traditional and digital banking methods. The combination of the solutions described will enable finance businesses to reach their future goals.