{"id":4200,"date":"2021-02-15T07:50:19","date_gmt":"2021-02-15T12:50:19","guid":{"rendered":"https:\/\/www.stratospherenetworks.com\/blog\/?p=4200"},"modified":"2021-02-11T17:57:50","modified_gmt":"2021-02-11T22:57:50","slug":"digital-transformation-for-the-financial-services-industry-how-banks-and-other-institutions-are-adapting-to-a-mobile-and-virtual-world","status":"publish","type":"post","link":"https:\/\/www.stratospherenetworks.com\/blog\/digital-transformation-for-the-financial-services-industry-how-banks-and-other-institutions-are-adapting-to-a-mobile-and-virtual-world\/","title":{"rendered":"Digital Transformation for the Financial Services Industry: How Banks and Other Institutions Are Adapting to a Mobile and Virtual World"},"content":{"rendered":"

\"AIf you want to check your account balance, deposit a check, or transfer funds these days, you probably don\u2019t have to plan a trip to your nearest bank branch to do so. Many of us can perform all of those tasks and more by simply logging into a mobile app and scanning a check or scheduling a transfer.<\/p>\n

That\u2019s one example of digital transformation<\/a> in the financial services industry. Particularly in a world where in-person interaction has become hazardous because of the pandemic, digital transformation \u2013 the process of adopting new technologies to improve business processes and adapt to evolving consumer expectations \u2013 has become mandatory for companies that want to stay competitive and relevant, according to Gartner<\/a>.<\/p>\n

\u201cWhile there have been unique stressors imposed on all industries as the ongoing pandemic unfolds, the enterprises that were already more digital going into the crisis are doing better and will continue to thrive going into 2021,\u201d John-David Lovelock, distinguished research vice president at Gartner, stated last fall in a press release<\/a>.<\/p>\n

We\u2019ve previously covered what COVID-19 means for digital transformation<\/a>, as well as how the drive to digitize affects healthcare organizations<\/a>, manufacturing companies<\/a> and small businesses<\/a>. In this blog entry, we\u2019ll explore what digitization looks like in the financial services industry and why organizations in that sector must prioritize it to succeed in 2021 and beyond.<\/p>\n

How New Tech Can Enhance CX in the Financial Sector<\/h2>\n

Because of COVID-19, many financial services organizations \u2013 like businesses in other industries \u2013 have significantly sped up their digital transformation initiatives, according to the Security Boulevard article \u201c3 Ways Financial Institutions are Embracing Digital Transformation<\/a>.\u201d New technologies that financial institutions have embraced include automation and AI. For instance, the article states that some have automated compliance and risk assessments.<\/p>\n

Additionally, some financial organizations have adopted cloud technology \u2013 such as cloud phone systems \u2013 to accommodate remote workforces and improve the customer and employee experiences. For instance, one of our clients \u2013 a global financial services organization and Fortune 100 company \u2013 recently replaced an outdated contact center solution with a next-gen Contact Center as a Service (CCaaS)<\/a> platform, which allows for greater flexibility and accessibility for their agents around the world.<\/p>\n

Another example of digital transformation in financial services includes the embracement of mobility. Many banks and other financial institutions now have mobile apps, allowing consumers to access their accounts and perform many functions via smartphone.<\/p>\n

For banks, in particular, delivering personalized mobile and online customer experiences is a must to keep up with their clients\u2019 evolving preferences: The portion of consumers who reported interacting with their bank online or through a mobile app shot up from 32 percent in 2018 to 50 percent in 2020, according to the 2020 Accenture Global Banking Consumer Study<\/a>.<\/p>\n

As COVID-19 made in-person interactions potentially deadly, many people went from banking face-to-face to doing so from a computer or mobile device. Forty-four percent of consumers ages 18 to 34 signed up for online or mobile banking during the pandemic, according to a global study released last year by Boston Consulting Group<\/a>. Even after the public health crisis dies down, 24 percent of customers (on average across all 15 countries included in the study) anticipate going to bank branches less or not visiting physical bank locations at all.<\/p>\n

Subsequently, it seems clear that success in banking depends heavily on delivering the digital, mobile and personalized experiences today\u2019s consumers want.<\/p>\n

Digital Transformation Challenges for Financial Institutions<\/h2>\n

Given how heavily regulated the financial services sector is and how commonly organizations in the industry find themselves targeted by hackers seeking access to monetary data, cybersecurity and compliance are pressing concerns when financial institutions adopt new technologies.<\/p>\n

As a result, organizations in the financial services industry must take steps to ensure data security when implementing new IT solutions, such as the following:<\/p>\n