2020 has been about two things, covid-19, and digital transformation. Cloud services have become old news now. The trend is to optimize the tools within cloud computing platforms like Microsoft Azure and AWS- to best serve our needs. For financial firms, 2020 digital transformation has been about four things.
Grow out of Legacy Systems
The cloud-born FinTech companies have been undermining the importance of scalability for a 2020 financial firm. Legacy systems or old technology hold back a business predominantly due to siloed data and a lack of system interoperability, which hinders its productivity. Financial firms have been able to reduce costs and organizational risks by moving to the cloud. Cloud computing also makes it easier to deploy products and customer experiences at scale. The majority of bank executives want to remove legacy systems that are expensive to maintain and slow to deploy new functionalities to upgrade their IT infrastructure. The agile cloud solution is great in terms of operational flexibility and makes it easier to meet regulatory requirements.
Fraud and Cybercrime
Except for some of the very public high-end breaches, determining the financial scale of a security incident can be difficult, But it sure is a lot. Since compliance and cyber threats are not going anywhere, financial firms need better security solutions that serve the purpose of maintaining a secure infrastructure and are not too heavy on pockets. Some of those can be
- Improved screening for fraud detection of all online, mobile, and customer support channels
- Inclusion of Cloud Access Security Brokers (CASBs) to aggregate and identify cloud threats
- Realtime monitoring for SaaS and IaaS programs
- Cloud application back-up and disaster recovery solution
Resilience for Growing Cyberthreats
Business resilience is a necessary component of every company’s security plan, not just a financial firm. Resilience refers to the ability to quickly respond to, recover from, and resume operations during a security event or other disruption of operation. Since this was a year of disruption, pandemic, disasters, remote work, and more, resilience has never proven to be so important. With the need to increase operational manageability, companies have also increased their risk spending, and the digits are not likely to come down in the future. Some measure a company can take to increase resilience are-
- Develop an incident response plan.
- Set user provision and authentication controls.
- Identify organizational and environmental risk factors in advance.
- Test processes and monitor user and system response.
Customers Experience-> Digital Experience
The modern customer is open to non-traditional ways of doing things, and that includes banking. Anything that is accessible, more mobile, and makes their lives easier is welcome, and the rest gradually becomes irrelevant. Customers now want a personalized experience that applies to banking, too. To deliver a smooth customer journey has been the most important trend in retail banking and the path that leads to it? Leveraging data correctly.
The financial firms are delivering that personalized experience by using their customer’s history and financial information like various considerations, purchases, and support. AI tools and bots have opened up this field wide open, and companies are utilizing them efficiently.