The financial services industry is changing and is seeing big technological changes as well. But the rate at which the finance industry is innovating is definitely unlike other sectors and that too for the good. It has been observed that there is automation between the different work flows that service the divisions within the capital markets and infrastructure. For making decisions like wealth management or businesses in optimising lending practices, automation, robotics, data and data analytics are being used to make intelligent decisions that the consumer would be satisfied with. The rise of innovative solutions in the financial service industry is a perfect example of how this new reality is reshaping the way we think about the banking business model.
Financial Industry Take Up Newer TechnologiesFinancial technology is at a stage where it is capable of providing a foundation for financial services in order for them to innovate and transform. Yet a huge cultural change is required wherein companies must overcome the final barriers and roadblocks to widespread business adoption. The financial services industry is known to move faster and develop solutions that compete directly with traditional methods of delivering financial services. With every effort taken by the finance industry, it is moving closer to the extreme of digital transformation.
Financial Services Seek Improved CybersecurityAs cybersecurity threats are on a rise, so are the number and extent of the regulations that seek to protect organizations and their customers. While cybersecurity is backing up innovation and change, it is still not close enough to provide the levels of resilience and protection that organizations seek. To make matters move faster, organizations are thinking about data usage habits and practices. They are learning not only learning about how to protect it within the law, but they putting an effort to understand the ethical aspect as well.
Benefits of having advanced cybersecurity in financial firms
- Accessibility to cybersecurity risks and capabilities
- Facilitates technology innovation while managing cybersecurity risks
- Consolidates a company’s regulatory obligations
- Chance to engage with regulators on the status of their cybersecurity and cyber risk regulatory compliance.
Key Takeaways from "How Technology is Transforming the Financial Service Industry"
- The one game changing factor in auditing is analytics. If the numbers are tallied correctly there is no way a company can fall back on predicting anything important
- Organizations should indulge in preparing a cybersecurity policy at least once a year and get it implemented throughout the entire organization
- Cyber threats made in the finance industry are more advanced, sophisticated and global in nature
- The personnel working in the finance industry are clearly aware of the need of a proper cybersecurity safeguard for improved protection of data and other important information