Financial companies are heavily regulated and frequently scrutinized. While these companies increasingly are moving to the cloud, 81% of banking CEOs are concerned about the speed of technological change. In addition, personal financial information is in high demand by hackers. Balancing compliance and security mandates, providing customers with a modern user experience, and ensuring overall profitability is an ongoing challenge.
Top seven challenges facing financial services companies
- Manage risk -Some customers want to pay for their purchases using mobile apps such as Apple Pay, Google Wallet and others-and process them securely.
- Thwart cyber-security threats -The threat and impact of cyberattacks on the financial sector is increasing.
- Overcome the legacy IT factor -Many financial services companies are relying on decades-old software to power their day-to-day business.
- Optimize the customer experience -Financial services firms must meet changing customer expectations and competitive pressures.
- Utilize high-performance computing -Financial services firms require high-performance computing (HPC) solutions and an enterprise-grade platform to perform computationally intensive tasks.
- Leverage analytics and reporting -Financial institutions need a way to access, consolidate, and manipulate data in a meaningful way.
- Improving communication -Firms require secure and often encrypted communication options for internal and customer-facing communications and must balance cost, regulations, and confidentiality.
Business Requirement for financial companies
Leverage big data for real-time insights and guidance
- Big data helps financial companies manage governance, risk, and compliance; provide better customer insight and service; optimize pricing and lending strategies; and promote better operational efficiencies.
Communication and collaboration
- Financial services companies must have productive communication internally and with customers.
- Financial firms' software systems must support and enforce compliance mandates.
- FSI firms must ensure compliance with jurisdiction-specific data privacy and protection rules while securing sensitive company and customer data.
- Big data makes it possible to capture real-time activity and immediately detect anomalies, detecting fraudulent behavior before any harm can be done.
Connectivity and reliability to ensure continuity
- Firms must be able to continuously monitor their infrastructure to prevent any potential downtime and minimize its impact on business if it does occur.