The financial services sector is undergoing a digital transformation, where new technologies are revolutionizing the way companies operate and how their operations are managed.
FREMONT, CA: Over the last few years, there has been a rapid evolution in the quality of the available financial technologies which are able to disrupt established ways of conducting financial business. The rise of fintech companies and solutions has led to a completely new and transformed financial services environment. Changing customer expectations, cutthroat competition, increasing regulatory requirements, the pressure to streamline operations, along with several other factors, are driving the push for revamping and innovating. A new age of open banking has allowed systems to quickly and seamlessly integrate with advanced platforms and applications. Physical banks and paper systems are quickly being obsolete by robust networked digital ecosystems.
[vendor_logo_first]The emergence of financial technologies creates opportunities for businesses, such as payment services providers. Furthermore, financial services firms operate in a highly regulated environment, which demands them to manage digital transformation while meeting demands from stakeholders for greater transparency and trust simultaneously. There is a strong trend in the financial services industry toward upgrading conventional systems and deploying an agile way of working across all business functions.
Companies today are looking to restructure their operating models so that they can become more agile and make efficiency benefits. To meet customer demands, investments are continuing in advance online banking, digital platforms, exploring a multitude of channels, insurance applications considered by customers, and enhancing data quality to gain from more accurate reporting. The adoption of digital technology is the crucial element to allow all these changes.
As digital transformation gains momentum, the speed and impact of risks in a hyperconnected world will become more complex to manage, needing rapid decision and response. Many financial service organizations will face risks stemming from significant reliance on third parties and from the enormous effort needed to institute anti-money laundering and anti-fraud abilities, fair lending practices, payment processing, and other digitally powered processes. Integrated risk management will be crucial to their success.
See Also: Top Digital Transformation Consulting/Services Companies
