Leadership teams in the world of banking have three options available to them when approaching science, technology, and digital concepts. They can be innovators, followers, or reactionary players.
If companies do not adapt to the changes in these areas as they converge in finance, then that business is working toward bankruptcy or death.
It is more challenging to anticipate what the future will look like since the speed of tech evolution forces continual adaptation. What industry executives can do in the world of finance is to understand how the options in the pipeline can help create strategies to keep growing as the days pass.
What Is the Future of the Finance Industry?
Bank executives are now competing in a global marketplace where multi-level multi-service options must be available to consumers. It is a low-cost, digital world where customers access their accounts from almost anywhere in the world.
Billions of transactions take place every day. Consumers might use their watch, tablet, or smartphone to access account information or move money.
That’s why analytically-based tech is at the forefront of the finance sector right now. Artificial intelligence can analyze the individual behaviors of each customer to create custom experiences for everyone.
Transactions today are instant. You can find them going across state or provincial borders regularly. International transactions occur more often today than ever before in history. Customers are demanding lower carbon footprints, virtual systems, and lower fees.
Then there is the growing trend of using blockchain to consider.
This information access allows each customer to make empowered decisions about their future wealth today. It is a structure that gives the industry an opportunity to grow wealth more efficiently because processes that required manual interventions can now receive automation.
It is also fraught with challenges that must be met for businesses in this industry to survive.
Customer Demands Continue to Increase
Science, technology, and the digital world have come together in finance to support a seamless experience across every channel. Regulators have taken notice of this data availability, and they are pushing the institutions in this sector since they have more access to information as well.
There is not a one-size-fits-all solution that will work for every company trying to grow in this sector. Most leadership teams turn to their IT department to lead the evolutionary process, but these teams are already managing the regulatory compliance issues that come through each year.
Most teams are already coping with cybercrime issues that involve data security in addition to these responsibilities. That work eliminates even more time that IT has to manage the embrace of digitization and digitalization for the industry.
Data security in the financial services industry must continue to be the focus of firms if the benefits of science and technology are going to stay present. Cyberattacks cost the average firm $18 million per year because they are attacked 300 times more often than any other sector.
Financial businesses must look to adapt despite these challenges. Those who can meet consumer needs first will be the institutions who see the most success in the future.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.