The financial services industry is changing at an ever increasing pace, supported by rapid advances in technology and driven by changing customer expectations, as a new generation of customers demand frictionless, personalised service and all customers expect to complete everyday transactions on-line.
Established financial services institutions are in a foot race with new, innovative, challengers who are rapidly becoming significant rivals for customers and their wallets, putting pressure on the sector to increase investment in technology and data to deliver an enhanced customer service whilst keeping their client’s money and information secure.
Heightened Customer Expectations
Customer expectations are evolving too rapidly for traditional ways of working to keep pace with. Consumers now expect seamless multi-channel customer service delivered at a time and place that suits them. Financial services organisations need to differentiate their products as customers increasingly demand a personalised service e.g., using data analytics to provide a marketing experience at the time when the information is most relevant and useful to the customer.
For financial services organisations to remain competitive they need to adjust ways of working, encourage innovation and put technology at the heart of everything they do.
Data, AI and Machine Learning
The management and usage of data is key to all successful digital transformation efforts. Data layered with new AI/Machine Learning techniques is supporting improvements across financial services use cases underpinning operational efficiency, revenue growth/sustainment, customer experience and reputational risk. The huge amounts of data that financial services organisations process drives a wide range of opportunities to leverage ‘big data’, including deriving new customer insights, increasing operational efficiencies and improving fraud detection.
Gartner has shown that a majority of financial institutions (53%) are employing AI methods to foster new thinking and disrupt business. These methods can only be leveraged through a focus on data architecture in particular in improving data management and processing techniques.
Open, Connected & Scalable Platforms
Open Banking regulations have provided opportunity for new entrants to the sector but there is also an opportunity for more traditional banks to create new products and services that connect these new services together to enhance customer experience. Some organisations are looking to build technology platforms that enable and encourage the wider financial services ecosystem to build new products and services – making them a key enabler in the digital marketplace.
Open APIs are also enabling banks redefine their role in the marketplace for example through collaboration with other financial services providers to create distinctive products and services.
Many financial services organisations rely on complex legacy technology platforms for key aspects of their service delivery. These legacy systems are expensive to maintain and can hinder financial services organisations’ ability to innovate. Financial services organisations need to embrace technology innovation to transform their business: enhancing customer relationships, driving operational efficiencies, and ensuring ongoing regulatory compliance.
Technology transformation is accelerating, but financial services leaders typically only get one shot at getting it right and face challenging decisions around how they reimagine their business and technology strategies and supporting service delivery models to maximise the benefits of technology investment.
Peru has many years of experience working with financial services clients in the UK and Ireland. We have helped clients maximise the return on their IT investment through development and execution of initiatives and have undertaken cost and contract reviews of major outsource deals to ensure value for money and effectiveness of commercial agreements. Many of our financial services clients have relied on our supplier management expertise to help them design and implement effective governance controls to underpin regulatory compliance requirements and when supplier relationships have gone off track, we have helped clients understand and address root cause issues and optimised commercial agreements.
When considering major transformation initiatives, it is critical for financial services organisations to have the right capabilities and disciplines in place and our change experts can help you shape and mobilise major programmes and undertake maturity reviews focusing on people, process and technology.
Peru can also help financial services organisations mature their management and use of data using our best practice data framework toolkit to help organisations respond to regulatory demands, understand where data resides and define how it can be used to support key challenges such as delivering personalised customer service and exploiting opportunities for process automation. Book a meeting to talk through how we can help your organisation.