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Technology, innovation and the financial services industry
Digital strategies driving change across financial services
Innovative technology strategies are transforming the financial services landscape. From mobile technology and process automation to blockchain and fintech alignment, these digital efforts are changing how organizations are meeting consumers’ changing buying preferences and conducting business. For instance, much of the transaction processing, matching, reconciliation and moving of information between different parties will be a thing of the past. Likewise, with the growth of fintech services, many financial services organizations are faced with a new competitor, or ally. Do legacy financial services businesses replicate the disruptive technology within their own institutions or partner with fintechs to join forces through collaborative arrangements? These changes open up new opportunities to serve consumers, increase efficiencies and lower costs.
However, with opportunities and change, newer technologies and innovation can also usher in risks. Cybersecurity and data governance are two areas where financial services companies continue to struggle, especially when using third-party technology providers. Unfortunately, too often, a breach in a security-weak third-party can evolve to an enterprise-wide cyberattack resulting in costly business interruptions and reputational damage.
Keeping up to date on the advantages, risks and challenges digital transformation offers will remain important for all financial services organizations.