Digital Transformation Trends in Financial Services for 2023
On the one hand, the sector continues to see the need to accelerate digital transformation as part of companies’ strategic priorities. However, these current efforts are being hindered by a looming financial crisis. Most financial institutions are diffusing this catch-22 by spending wisely and choosing to invest in technology that is not just a quick fix but guarantees to pay back multifold in a healthier economic environment.
In this article, we delve into some of the top digital transformation solutions that will help financial services institutions to remain relevant and competitive in the current climate.
Increased Adoption of Cloud Computing
Cloud computing is becoming increasingly essential for financial services institutions looking to remain competitive in a digital-first world. Statista reports that as of 2021, cloud adoption in financial services in the US sits at 54%. With the amount of data that banks and financial services companies handle, we expect to see a deeper adoption of cloud computing in 2023. Responding quickly to regulatory changes and getting back to customers with agility and insight is imperative for FSIs. The best way to achieve this is with faster and easier access to data, which is native to non-cloud infrastructure.
The cloud provides financial services organizations with increased operational efficiency, improved risk management, and enhanced data security. More and more companies will realise the benefits and cost-effectiveness of cloud computing adoption in the years to come.
Advanced Analytics
Data is increasingly becoming a valuable asset for financial services institutions, providing them with the ability to gain a 360-degree view of the customer, segment, demographics, behaviors and market trends. In 2023, we can expect to see a continued focus on advanced analytics, including the use of machine learning and artificial intelligence to analyze large data sets and make more informed business decisions.
Advanced analytics can be used to predict customer behavior, identify opportunities for cross-selling and upselling, detect fraud and improve risk management. Beyond this, advanced analytics have the potential to redefine every process in a bank or a financial institution and make it more effective.
Improved Workflows
Financial services institutions are facing increasing pressure to improve their workflows and provide users with a seamless experience. Improved workflows can positively impact efficiency and productivity and can also help reduce costs by automating manual processes, allowing staff to focus on more high-value tasks.
Other long-lasting benefits of improved workflows in financial services include enhanced customer experience, as faster processing time and minimized errors result in higher-quality service. They can also lead to better risk management, as automated processes are less prone to human error and can help ensure compliance with regulations.
An example of a solution that can streamline workflow issues and improve operational efficiency is a desktop integration platform that can help FSIs organize their desktop from the application-centric layout that we’re used to into a seamless workflow-centric experience. Implementing such a platform will eliminate the need to copy/paste across disconnected platforms and thus, simplify and speed up work processes, reduce errors, improve productivity and ultimately, help an organization on its way to digital transformation success in 2023 and beyond.
