Digital Transformation in Financial Services: How to Meet the Needs of Online Customers
Fintech startups may present significant competition for traditional financial services firms, but their innovations also provide an example of how long-established institutions can undertake their own digital transformation. A CIO market analysis reviews five of the most important initiatives financial services organizations need to embrace in order to accelerate the digital journey. Chief among them is addressing the needs of the digital customer.
Services and business processes must evolve in order to remain relevant to today’s increasingly online consumers. For example:
- Roughly 81 percent of household finance managers banked online at least once in the past 12 months, according to a Statistic Brain research study.
- Mobile banking is increasingly entrenched, too, with a Bank of America survey revealing that 62 percent of Americans use a mobile banking app--up from 54 percent in 2016.
- Furthermore, every generation is getting on board. Seventy-five percent of millennials, 66 percent of Gen Xers, 47 percent of baby boomers, and 40 percent of seniors have adopted mobile banking tools.
To that end, financial institutions can’t ignore that their digital transformation efforts must include providing clients with up-to-date accurate information about their accounts from anywhere. It also means leveraging big data and analytics to identify trends that will help them tailor new products to customers in order to continue growing their businesses.
Banks and other financial services companies seem to have gotten the message.
According to the CIO market analysis, more than half of these organizations’ IT leaders put improving customer service at the top of their list of tech investment business drivers. At the same time, they can’t ignore the daily requirements of maintaining strong risk management and cybersecurity postures, continually staying ahead of credit and investment, liquidity, regulatory, data integrity, and geopolitical exposures and uncertainties. Such efforts require processing large amounts of data in real time, often leveraging information in conjunction with technologies like predictive analytics and adaptive network behavioral analysis to spot emerging risks.
Managed Network Services: Digital Transformation without the Disruption
With all that on their plates, many financial services organizations are thinking about how managed service providers (MSPs) can help. Partners with expertise in secure managed network services for global WANs can save your internal IT a lot of headaches. Furthermore, tenured cybersecurity professionals for managed detection and response can give your organization more time to concentrate on serving customers and growing the business.
That’s the position taken by Carl Eberling, CIO at specialty international finance firm Encore Capital Group. “I want my people spending less time on things we can rely on service partners to deliver, and more time on being strategically engaged with the business,” as quoted in the CIO analysis.
Learn how IT leaders meet the financial industry’s digital transformation challenges:
- See how financial services executives prioritize their digital transformation investments
- Explore critical factors used to focus on customer initiatives while still ensuring security
- Get best practices to deliver the network support needed in the age of the digital customer