One of the most important aspects of disruption in the financial sector is the expedited digitization of products and solutions. Along with that, there is a growing need for companies to ensure that they can deliver end-to-end service solely on their digital platforms without switching between legacy and digital channels. This sudden shift to digital significantly enhanced the pressure to establish systems swiftly and effectively. While making this drastic shift, financial leaders in the financial services industry are also responding to the shift in customer expectations, emerging regulatory requirements, and the re-imagination of back-end processes. Companies need to understand their priorities in the wake of disruption along with the challenges preventing them from meeting their goals. While leaders across the financial world understand the benefits of automation and integration initiatives, as per our research, concerns around data security and governance hold them back from taking on these initiatives.
Challenges Faced by Financial Services
In the current times, businesses recognize the importance of integration more than ever before. As a matter of fact, financial organizations understand the power of automation and integration and have made the most progress on realigning their IT and business decision-making to improve collaboration among the two departments.
However, we found that financial units are also the most susceptible to security and governance challenges. That’s the reason why financial leaders were being held back, preventing non-technical users from integrating their data streams and indicating the balancing act they face in re-imagining their operations while maintaining compliance.
Having perhaps to pay the debts of consumers’ changing habits towards interactions and ultimately transactions, financial organizations has been transforming slowly. In recent years, we’ve witnessed the emergence of neobanks occupying spaces that were neglected by conventional financial institutions, who are now being compelled to transform their customer experience with more agile competitors.
The digital revolution has impacted financial customers’ expectations of their financial services providers, and now the demand for digital as well as mobile platforms to deliver services to customers has become more than a necessity.
Ways to Overcome Them
Financial services need to strengthen their IT infrastructure to cater to their customer’s growing demands and shifting purchasing habits and bring new digital and mobile services to market faster and minimize development costs.
Deploying modern data integration solutions to create data connections and drive transactions faster can enable financial institutions to create integrated experiences that cater to new and emerging requirements for customers. These solutions allow non-technical business users to create data connections while enabling IT to handle governance. As non-technical business users can create data connections in minutes without waiting for IT teams, the ability for financial institutions to deliver actionable insights and make decisions improves by leaps and bounds. Thus, it becomes simpler for them to deliver the promised value to consumers and ultimately grow revenue. Meanwhile, IT teams can take up the role of governance and focus on more high-value tasks and innovation.
Features like pre-built application connectors, shared templates, AI data mapping, dashboards, and more enable even the non-techies in the business ecosystem to create data connections and facilitate faster data exchange across partner ecosystems. Non-technical users can onboard customers 80% faster, thus ensuring delightful experiences and faster value. So, anyone could be turned into a data integrator using these modern, self-service-powered integration platforms. By enabling non-technical users to create integrations, financial organizations can free up their IT resources to manage data governance and drive innovation.
Ergo, modern data integration solutions enable financial institutions to handle the governance challenges and deliver value to consumers and meet their emerging needs at the speed of business.