Financial Services

Industry Challenges

• Data Breaches: Data breaches involving financial service firms increased by 480% from 2017 to 2018. With each attack costing financial institutions millions, innovative solutions are needed if we are to avoid a repeat of the lawless days of the Wild West. Integrating distributed ledger technology with existing financial infrastructures poses some serious obstacles that must be overcome. Even so, we are past the point of asking whether block chain is the holy grail of financial data security.
• Regulatory Compliance in Finance: The ever-changing regulatory environment poses a constant challenge.
• Big Data Use in Finance: Big data provides both opportunities and obstacles for financial service. But sorting through torrents of unstructured data for useful information is no small undertaking. It requires powerful data analytics technology if institutions are to reap a benefit. Fortunately, data analytics solutions are emerging with the potential to transform asset management, trading, risk management, and other financial services.
• AI Use in Finance: Industry experts believes that AI will transform nearly every aspect of the financial service industry. Automated wealth management, customer verification, and open banking all provide opportunities for AI solution providers.
• Customer Retention in the Financial Services Industry: Competition for financial service clients has never been fiercer. While brand loyalty may not be dead, it is definitely on life support. What matters to most customers are greater personalization, more automated services, and easier access to services. Institutions that can deliver all three will capture their share of the market. Key to not losing the battle is recognizing that customers are less concerned with brand familiarity than getting the services they want. Providing customers those services is key to client retention.