The financial services industry has been undergoing a digital transformation for some years now, but 2020 was the year that made it clear to everyone that the pace of change was going to be faster than ever before. The pandemic accelerated the shift towards digital technology, but this trend is set to continue well into the future. Financial services companies must keep up with the ever-increasing demand for digital services and modernize their core data systems and architecture.
To meet the rising demand from customers for digital services, financial institutions must simplify the development and deployment of applications and solutions. By accelerating contact and mobile payment solutions and making greater use of robotic process automation (RPA) and bots to streamline and simplify operations, financial services organizations can stay ahead of the curve.
Remote work has become the norm for many industries, and financial services companies are no exception. While remote work was initially adopted out of necessity, it is clear that it is here to stay. Financial services companies must consider a range of factors, from recruiting and retaining employees to addressing security challenges and minimizing the impact on productivity and creativity.
Artificial intelligence (AI) and machine learning (ML) have become central to the day-to-day operations of financial services organizations. From handling sensitive financial transactions to fraud detection, AI and ML are being deployed across the industry. Financial institutions that previously relied on legacy technology are now catching up with digital-native competitors in the fintech and bigtech space by tapping into AI and ML.
Ransomware attacks are becoming increasingly common and costly, and financial services companies are a prime target for cybercriminals. Cybersecurity should be a top priority for all financial services organizations, as the cost of ransomware is set to top $20 billion in 2021.
To build and retain loyalty with modern customers, financial services organizations must provide a highly personalized experience that includes omnichannel access, mobile-friendly sites, and intuitive applications. The demand for more and better digital experiences is only set to grow, and financial institutions must ensure they have the infrastructure to keep up.
Finally, the adoption of AI, the Internet of Things (IoT), and automation is now widespread, and financial institutions must be able to store, secure, access, and analyze huge quantities of data. However, this is a challenge, and technical staffing is in short supply as the competition for data science and AI expertise intensifies.
In conclusion, financial services organizations must embrace the latest technology trends if they are to remain competitive in the years ahead. From remote work to AI and ML, from cybersecurity to digital experience, and from data expansion to simplifying the development and deployment of applications and solutions, financial institutions must be agile and innovative to stay ahead of the curve.