Digital Transformation Unlocks New Opportunities for Financial Services Industry

In today’s digital world, people are rapidly embracing mobile and online banking services. For banks, credit unions and other financial service institutions, this requires devoting resources to the mobile consumer experience, upgrading applications and scaling up infrastructure to process more transactions and eliminate downtime.

Many financial services institutions are racing to release redesigned, customer-facing mobile apps that interface smoothly across different devices. New features are continually being developed and rolled out, providing customers with an enhanced financial service experience. Consumers expect ease of access, ease of payment and app speed.

Digital transformation enables the financial services industry to be increasingly customer-centric. Financial service businesses must now not only compete with other financial firms for consumer attention and loyalty. They now must compete with anyone who offers a positive customer experience, including technology and consumer brands. They must always keep in mind that the purpose of digitization is to focus on making people’s lives easier.

In addition to the challenges of continually upgrading and enhancing the customer experience, financial services professionals face other major challenges. Compliance requirements are changing, and the inherent limitations of existing legacy finance and enterprise resource planning pose new threats. It’s becoming harder to navigate the maze of complexity of new-generation systems and best practices for digital transformation.

Today’s financial service industry leaders need to provide the strategic and tactical thinking that supports growth while keeping the competitors at bay. Digital transformation has the power to improve client engagement, increase service profitability, lower costs and streamline processes.

There is a growing set of technology-based solutions that will help financial services managers stay on top of regulatory requirements while increasing the consistency of data, ensuring accurate and timely data. Here are 6 emerging trends in the financial services industry:

1. Real-time predictive analytics that help financial institutions engage with customers and optimize cash flow.
2. Combined core ERP and finance modular systems that provide best practices in multiple streams.
3. Consolidation of data and transactions that simplify month and year-end closings.
4. Consistent evidence-based information that ensures everyone can agree on tactics and next steps.
5. Intuitive user designs for unified mobile systems that are built to support regular reporting but also support ongoing management and ad-hoc decision making.
6. Cloud-based, intelligent implementation that reduces the time needed to operate, contain costs and scale easily.

The future of the financial services industry is tied to the success of the customer. Activity is continuing to shift away from branches toward online, mobile applications. Banks, credit unions and other financial institutions will need to find new ways to help customers build wealth through digital transformation.

For more information about how Marsh & McLennan Agency (MMA) provides financial institutions with risk management strategies, contact a member of our financial institution team here.