Technology Disrupters in the Financial Services Industry
Advanced robotics and artificial intelligence (AI) used to be the substance of science fiction. Now they’re potentially poised to make the difference between success and failure for financial institutions.
Technology disrupters are expected to transform the financial services industry by 2020. Financial technology will disrupt and reshape business models. Data driven customer intelligence models will predict revenue growth and profitability. Digital services will be the mainstream for everything from consumer banking to wealth management. Asia will emerge as a key center of tech-driven innovation. Financial institutions need to be proactive with this this emerging technology.
Here are 6 priorities for many financial institutions as they prepare for the impending technology changes that could impact their industry.
- Update operating systems.
A fast and flexible IT architecture will facilitate flexibility financial organizations, allowing them to add or subtract capabilities quickly as the landscape changes.
- Simplify legacy systems.
Legacy IT systems create a huge financial burden. Aggressive software-as-a-service (SAAS) deployment plus robotics and AI can help provide better service at lower costs.
- Use technology to become smarter about customer needs.
AI can turn big data into smart data, allowing businesses to better handle customer privacy and provide a true omni-channel experience.
- Prepare architecture to connect to anything, anywhere, anytime.
Financial technology needs to interact with everything, from cloud services to customers’ mobile devices. Interoperability provides faster deployment, lower costs and better service.
- Address cyber security before it’s too late!
Cyber security incidents continue to increase as does the cost of failure. Financial organizations will need to rapidly fine-tune vulnerabilities and empower infrastructure to respond to attacks, hacks and breaches.
- Gather and grow talent.
Human capital strategy should be about recruiting, training and promoting a culture of collaboration and innovation. Understanding the real-world implications of these technological advances as they apply to the financial services industry will give businesses the competitive edge they need to remain relevant in today’s rapidly advancing technological environment.
Marsh & McLennan Agency understands the unique challenges facing financial services firms today. Contact us today to learn more about how our industry expertise in the financial services industry can help your organization properly manage traditional and emerging risks.