By Jordan Hernandez • October 13, 2020

Digital Transformation Accelerates for Financial Services

Does your company have the foundation to provide modern digital experiences?

The relationship between a company and its customer has changed markedly because of the current environment. Customers are waiting for financial services to rise and step up to the plate when it comes to technology, and employees are in the same boat. This year, roughly 76% of customers expect companies to understand their needs.

Since the pandemic, many consumers have increased their reliance on digital services at a staggering rate. Virus-related lockdowns and social distancing measures sparked this increase with no signs of reversing.  

There is a digital disruption within the financial service industry, and businesses are attempting to capitalize on the present. Firms of the future are digitally adapting to stay competitive, but most are slow at adjusting. 87% of senior business leaders say digitization is a priority, but only 40% of organizations have brought digital initiatives to scale. 

Early adopters of cloud technology are now expanding upon their current infrastructure to acquire actionable data and improve processes. Another wave this year has been expanding upon digital experiences with customers. Helping bridge the gap in common challenges like communication, efficiency, and security

This alignment of business with technology is achieved through management, a digital strategy, and infrastructure to support any internal or external programs. Financial services have just tapped into the benefits of cloud technology and will continue to unlock new ways to perform as budgets continue to rise into the next year.

Here are some focuses that revolve around the acceleration of digital transformation.

  • Expanding digital infrastructure for the future

In 2023, global spending on digital transformation will reach up to $2.3 trillion. Businesses no longer can afford to rely on traditional legacy systems that live offline as the majority of the world now has online access. Technology needs to speak to each other and connect. With three types of cloud options, many have moved to a hybrid-cloud infrastructure to maximize public-facing and private opportunities. 

Businesses have caught on that cloud-based infrastructures create a proactive environment that powers virtual services while collecting quality data. Financial services that are currently in the process of expanding their digital infrastructure are preparing for years to come. As the market size for cloud services estimates to reach $927.51 billion by 2027, it is never too late to start your digital transformation today.

  • Enhancing data and analytics for growth opportunities

As the year continues, cloud services will be essential for 90% of data and analytics innovation. The key to finding growth opportunities within data has been focusing on predictive analytics, customer insights, marketing opportunities, and production management. 

Thanks to automation and AI power, quality data, and improved processes are within grasp. A common challenge for many businesses is to be able to decipher data into actionable opportunities. The amount of growth opportunities in data is astonishing and will continue to lead the way to cost-effective solutions. 

  • Enriching customer experiences and security

In a recent study, 80% of participants listed an improved digital experience for their customers as one of their top three priorities this year. Whether a current client or new customer tries a digital service, the experience has to be smooth, efficient, and safe. 

Alignment of business and technology is crucial toward meeting customer expectations, and financial services are now investing in customer data with improved cybersecurity. As technology grows, so do security and compliance measures. Cybercrime is on the rise, and having the right processes in place has been an increasing challenge. 25% of all malware targets financial services, so making sure your customers feel safe becomes appealing.

When security measures are in place, trust becomes earned, leading to a stronger customer relationship. Roughly two-thirds of companies compete primarily based on customer experience. A few ways to gather rich customer data are; collecting experiences in real-time, identifying key business drivers, monitoring the customer-journey, and integrating customer experience with employee feedback to gain actionable data.

Taking the next step

The future is bright for financial services, but as the new year approaches, so does the competition. Having the right foundation for digital expansion is crucial for growth, and businesses are consulting with IT professional services to digitize their infrastructure and processes. 

A digital transformation allows a firm to possess technology drivers like; cloud computing, automation, and AI. Financial services that can harness this technology will be able to adapt to the growing needs of their customer. Collecting quality data is crucial to making smarter, cost-effective decisions, but protecting that data just as important. 

As a leader in technology solutions, Tekscape continues to help financial companies increase revenue with cost-efficient IT transformations. We equip businesses with a strategy and foundation, helping provide the tools to gain actionable data through managed services, cybersecurity, workforce productivity, and IT transformations. 

Want more information on ways to approach digital transformation? We can help.

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