Top 5 financial IT solutions transforming the industry
As technology advances, customers expect to access instant services through their phones regardless of their location. Businesses are also hoping to streamline their services and maximize profits.
The financial industry is currently facing major shifts from traditional ways of operation thanks to technological advancements. The fast-changing technology landscape is driven by major transformations likely to enhance user experience and improve efficiency. If anything, players in the financial sector will be forced to adapt to this changing environment or be faced off by these advancements.
So, let’s look at some of the top five financial services IT solutions transforming this industry.
1. Data and analytics
From the financial services IT solutions perspective, data and analytics represent a vital role, like an engine that helps to propel a car. In an information-saturated environment, financial institutions use data to provide meaningful insights to both design and interpreters of their operational landscape.
It is a trip inside the complex world of numbers, where raw data becomes actionable intelligence.
Traversing this terrain is like navigating unexplored land. Financial institutions use analytics to analyze past trends and predict future situations. It is about reading the financial tea leaves, understanding patterns, and gaining a prospective advantage.
Analytics becomes a navigation compass guiding institutions not to be reactive but to adapt proactively to financial market changes.
2. App modernization
Now, let’s discuss app modernization, which means reviving those previously used financial applications with a fresh coat of paint. Sticking to old software is like holding onto a flip phone in the world of smartphones- it just doesn’t cut it.
App modernization, therefore, refers to the makeover financial institutions are giving their legacy applications making them smarter and more efficient for 21st century customers.
One may liken it to renovating a house. Instead of knocking down the whole structure, you upgrade what is essential, add some functionality, and make it more comfortable. This is what banks also do to their applications. They are re-engineering the user interfaces, creating a better overall user experience, and introducing state-of-the-art technologies to keep them at the edge.
3. Mobile banking
It is estimated that there are about 7.1 billion mobile users globally, and this number is projected to rise to 7.49 billion by 2025. If this trend continues, the number of mobile users could surpass the world population currently standing at approximately 8.1 billion.
More people now use mobile phones. Due to this, finance companies want services easily reachable to their customers. But how did they succeed? Many finance firms have created programs so users can access their services via mobile apps. From seeing account balances to doing cashless money movements and transfers, mobile bank services boosted efficiency and reduced queue time in banks.
Today, customers can make purchases in the comfort of their homes, transforming society into a digital and connected environment. But it doesn’t stop there. Customers can also make bank transfers and receive instant loans through their phones.
The advantages of mobile banking do not apply to users only. Banks also benefit a lot from providing such services. The more mobile users they have, the less the cost of operations. It is particularly essential when it comes to renting space. The fewer the customers visiting the banking halls, the smaller the renting space needed and even the number of employees. This translates to reduced operational costs, thereby increasing profits.
4. Cybersecurity solutions
While technology has improved efficiency and how we handle most things, we can not overlook its bad side. One of the greatest technological concerns in the financial sector is cyber security.
According to an FBI Internet crime report, it is estimated that nearly 800,000 cyber crimes are reported per year in the US alone. They have estimated the losses from cyber crimes to reach $10.5 trillion in 2025. You can imagine the global loss going by the figures estimated in the US alone.
So, what are financial institutions doing to combat cybersecurity threats and save their reputation? Well, there are various ways modern-day financial institutions are using to combat cyber threats.
At the forefront is the use of encryption. Encryption uses a coded language to safeguard sensitive data and information. These codes are hard to crack, preventing unauthorized access to information or data.
Besides encryption, we’ve also seen the emergence of automated security audits to neutralize cyber threats. Considering that cybercriminals change tactics every day, there is a need for financial institutions to update their security features.
Automated security software can scan various systems for vulnerabilities. In case of external attacks from hackers, this software can identify potential threats in advance and issue warnings. This preventive measure allows relevant authorities to take action before it gets out of hand.
5. Cloud computing
Think of cloud computing as the sturdy spine supporting the financial service sector. Why? Finance is always on the move. It jumps, twists, and turns with the rhythms of the market. Here’s where cloud computing swoops in – like a handy volume knob. Need more? Turn it up. Less? Turn it down. It’s all about balance.
This kind of ‘play as you go’ model shifts the game. It lets financial institutions tailor their tech power to their budget and needs. Pay only for what you need when you need it.
Cloud computing comes in three types – public, private, and hybrid clouds. Each type has its strength. Banks can pick the one that matches their needs, just like choosing the right tool for a task.
Public clouds have lots of resources. Private clouds give more control and safety. Hybrid clouds blend the good points of the other two. Changing what they offer to match changes in banking is easier with this flexibility.
Conclusion
Technology is driving a revolution in the financial world. It is changing things and laying new laws for the finance industry. This technological blend is vital for economic growth, ensuring that it stays dynamic, creative, and responsive to the requirements of the market and regulation.
Wide application of these tools will continue to shape the financial industry as we evolve. It will make it more robust, effective, and customer-centered.
