Fintech

Many new business models are emerging from these cutting-edge technologies, suggesting a bright and dynamic future ahead for the Financial Services industry.  However it is vital for executives to stay on top of these developments, in order to better understand their capabilities and to consider how they can be implemented in their organisations in line with the firm’s own risk appetite.

FS companies must employ innovation and technological developments which focus on delivering a deeper customer understanding and the experience necessary to acquire, engage and retain customers in a digital world. Rather than focussing on penalisation of customers, successful models will focus on transparency, empowerment and rewarding customers to provide enhanced UX and UI experiences thereby minimising risk of disengagement.

As with all emerging technologies, innovative products and services are not without their risks. This may include the compounding of existing risks that the firms already face, but it also includes new and emerging risks. In implementing any material business change, firms will need to ensure that their risk appetite and frameworks are considered advisedly.

Such new technologies allow companies to leverage data and insights in an increasingly seamless manner. The ability to provide a transformative experience by leveraging such enhanced data sets will permit Financial Services providers to tailor their offering to a customer’s wants, needs and desires. It is vital that firms have appropriate data strategies and the right processes around these strategies to benefit from these new capabilities in future.

The increasing costs of performing manual tasks is being driven down by the implementation of RPA. Such technology can also free up individuals to focus more on value-add support in the back and middle office operations. It is critical that companies identify the optimal locations to utilise these techniques in the most effective and efficient manner.

The implementation of ML & AI in any company’s operations offers benefits across the company by ensuring uptime for customers 24/7 and the reduction of manual tasks. They can also provide deeper understanding of behaviours and root-causes of issues, thereby offering increased productivity. Firms should consider a roadmap for the identification of use-cases and testing, and for the implementation and enhancement of the technology over the longer term.

DLTs and Blockchain are increasingly coming into focus with a growing number of use cases, particularly those with an emphasis on resolution of cross-industry challenges. In order to effectively inform their own strategies, firms should consider participation in or co-ordination with relevant industry use cases, thus ensuring that they properly understand the benefits, pitfalls and outcomes of the technologies.