With a series of high-profile breaches over the past few years, security is one of the leading banking industry challenges, as well as a major concern for bank and credit union customers. Financial institutions must invest in the latest technology-driven security measures to keep sensitive customer safe, such as:.
Banks and credit unions can use E2EE to secure mobile transactions and other online payments, so that funds are securely transferred from one account to another, or from a customer to a retailer. However, organizations using antiquated business management applications or siloed systems will be unable to keep up with this increasingly digital-first world.
Without a solid, forward-thinking technological foundation, organizations will miss out on critical business evolution. While technologies such as blockchain may still be too immature to realize significant returns from their implementation in the near future, technologies like cloud computing, AI, and bots all offer significant advantages for institutions looking to reduce costs while improving customer satisfaction and growing wallet share.
Cloud computing via software as a service and platform as a service solutions enable firms previously burdened with disparate legacy systems to simplify and standardize IT estates. In doing so, banks and credit unions are able to reduce costs and improve data analytics, all while leveraging leading edge technologies. AI offers a significant competitive advantage by providing deep insights into customer behaviors and needs, giving financial institutions the ability to sell the right product at the right time to the right customer.
Additionally, AI can provide key organizational insights required to identify operational opportunities and maintain agility. Sustainable success in business requires insight, agility, rich client relationships, and continuous innovation.
Benchmarking effective practices throughout the industry can provide valuable insight, helping banks and credit unions stay competitive.
However, benchmarking alone only enables institutions to keep up with the pack — it rarely leads to innovation. Innovation stems from insights, and insights are discovered through customer interactions and continuous organizational analysis. Financial service organizations leveraging the latest business technology, particularly around cloud applications, have a key advantage in the digital transformation race: They can innovate faster.
The power of cloud technology is its agility and scalability. Without system hardware limiting flexibility, cloud technology enables systems to evolve along with your business. With so many banking industry challenges to contend with, charting a clear path forward can seem like an overwhelming task — but with the right team to support your efforts, digital transformation is attainable.
The financial services team at Hitachi Solutions has been helping banks and credit unions unlock digital experiences through the power of the Microsoft platform since From data science expertise to business intelligence, AI and beyond, Hitachi Solutions is here to help your organization tackle banking industry challenges and embrace digital transformation.
Financial Services. Increasing Competition The threat posed by FinTechs, which typically target some of the most profitable areas in financial services, is significant. Regulatory Compliance Regulatory compliance has become one of the most significant banking industry challenges as a direct result of the dramatic increase in regulatory fees relative to earnings and credit losses since the financial crisis. Since they are the ones that are supposed to maintain the capital adequacy ratios and reserve ratios, they are also the ones that are supposed to liaise with regulatory agencies on such issues.
Executives from the treasury department are usually invited by the government when decisions regarding the banking industry need to be made. Treasury departments at banks are also in charge of maintaining a certain portion of their portfolio in highly liquid government securities. In countries like the United States, this is done because the banks act as broker-dealers to the governments and are expected to hold these securities before they can be further sold.
In other countries like India, banks are required by law to maintain a certain percentage of their portfolio in liquid government securities. The treasury operations of any bank are responsible for managing its operations in the event of a disaster.
Thus, to be prepared for the same, the treasury department has to anticipate the risks that can materialize over time. Treasury departments also have to perform a lot of normal back-office activities. They are supposed to regularly communicate with their branches regarding the extent of deposits that have been taken and the extent of loans that can be made. They also have to liaise with Forex department and proprietary trading department to monitor the amount of risk that the bank can take in real time.
This reduced the number of physical sources of information and mobilized information flows inside and between institutions. Banks introduced personal applications, so users could handle their own finances. This allowed easy and reliable access for customers, who now could directly manage their accounts and make transactions. Then came the introduction of chatbots, which can automatically answer an otherwise overwhelming number of uniform requests from clients and allow bank employees to focus on more unique and essential tasks.
Current prospects for future implementations of automation technologies. New automation opportunities in banking As history shows, automation in banking has been a project —and a prospect — 50 years in the making. Want to learn more about Intelligent Automation in the banking sector? Contact us. Automation Academy by WorkFusion. Enjoying our blog content? Please also send me emails on new Academy courses and updates?
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