The Next Wave of Digital Transformation in Financial Sector

The Next Wave of Digital Transformation in Financial Sector

The financial services sector is in the midst of a profound transformation in the last two years to drive innovation and meet the changing demands of customers post the global disruption.

The sector is rethinking its business strategies as the CIOs and their teams prepare to embrace the next major phase of digital transformation in the current scenario. They are engaged in driving technology change in their respective organisations to enable fool-proof operations to improve customer engagement.

Cloud and Low-code: CIO’s Close Companions

IT Heads are making a conscious effort to consolidate all the applications, adopt new technologies and move away from legacy. In this journey, cloud is clearly a preferred platform where CIOs see faster innovation happening. The other area that a lot of CIOs are placing the bets on is low-code platforms that allow them to develop, deply and manage applications on the fly. CIOs swear by the phenomenal velocity it offers in terms of application delivery.

Since some of the our legacy systems are not cloud-native, we are working on re-engineering and rebuilding them to be more on a Cloud set up,” says a CIO of a FinTech company.

On the cloud front, enterprises are literally spoilt for choice with leading hyperscale public cloud providers reporting double digit growth. Their focus on diversity and innovation of offerings are seeing results in the financial services sector, which has so far been a bit slow in adopting cloud due to regulatory restrictions.

AI to Embedded Analytics – Digital wave Sweeps through

When we look at other initiatives, a majority of the financial services companies have already implemented Artificial Intelligence and Machine Learning-based quality analysis.

According to an industry expert, “No doubt DevOps and DevSecOps are best practices. However, not too many financial services companies are doing it on their own because there is a lot of reliance on partners to bring that to the table.”

But that’s changing. Financial sector CIOs have also started adopting DevSecOps, and are working on zero trust and Cybersecurity mesh initiatives.

With companies rethinking their IT budgets, they are investing heavily in MIS training, Embedded Data Analytics, and are bringing more and more robotic automation processes (RPAs).

We must also take note of the fact that some firms have built a digital factory for operations and to encourage the whole paperless journey of their customers. The digital factory makes all the back office jobs completely seamless.

Going forward, firms in the financial services sector will constantly rethink how to leverage the existing capabilities and invest in newer technologies to make them a part of the overall business functions that helps to accelerate the technology roadmap significantly.

The current trends indicate that financial services companies are leveraging the power of technology to disrupt their own legacy business models, preparing to embrace the next major phase of digital transformation.