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The Future of Finance is Tech

Insight
Insight

FinTech is more important than ever when it comes to keeping up in the rapidly changing financial industry. Technologies such as cloud computing, data analytics, Artificial Intelligence (AI) and the Internet of Things (IoT) have the potential to cut costs, retain customers and protect against cyberthreats, as long as organizations are willing to invest in them. See more: http://ms.spr.ly/6005pvK4x

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The Future of Finance Is Tech
The financial sector has always been on the forefront of technology adoption, so it should come as no surprise that headline-making innovations such as blockchain, robotics and cloud computing are cropping up across the industry. The COVID-19 pandemic only served to solidify our adoption of these technologies. Customers expect to conduct their banking via mobile phones and the workforce expects to be able to work from home. Times have changed, and changed fast. To keep up, financial institutions need to leverage technology. FinTech is more important than ever. Making big data usable. The term big data has become a catch-all buzzword for our ever-increasing stores of information. Essentially, its a companys vast pool of information that has the potential for remarkable insights. When organizations are able to analyze all that data, they can make more informed business decisions and create better customer experiences. But before valuable insights can be gleaned from it, data must be ordered and verified so its usable and trustworthy. According to The New York Times, in 2014 data scientists spent 5080% of their time curating and preparing data so it could actually be used.1 With the rise in data availability, this statistic is likely to have increased. Big data & the cloud Cloud computing and big data are closely intertwined. The cloud helps break down silos between data pools across an organization, leading to reduced fragmentation (and a lower cost of IT ownership). It also offers lower data storage costs and, on some platforms, built-in analytics capabilities. In short, the cloud makes naturally unwieldly big data far more manageable. Its an essential IT initiative for those organizations struggling to get more out of their data.
The IoT In 2016, Citi launched a program in New York City that gave customers cardless entry into ATM lobbies after hours just by using their smart phone. This was just the latest in a series of new technology rollouts for the company, including enhanced ATMs that customers could use to conduct transactions typically reserved for tellers only. It may not seem like much, but this is just one area in which were seeing financial businesses embrace the Internet of Things (IoT), a connected web of smart devices. This technology really has the potential to revolutionize the industry. For example, IoT can be combined with big data to provide a more personalized customer experience. By analyzing customers purchasing and investment behaviors, banks can offer budgeting services or financial products that are relevant to their lifestyles. But the benefits of IoT arent limited to banking. Insurers can use it to simplify underwriting and claims processing, better determine risk and improve default predictions. It has the potential to increase efficiency in international trade flows by tracking movement, supply and demand, thus reducing cost and risk. All about automation The word automation is another term that gets thrown around when talking about innovative technology. But what does automation actually look like when it comes to the financial sector? App modernization Most B2C organizations (and many B2B ones) already have an app where their customers can complete transactions, answer basic questions and reach out for additional support. Thats a great start, but apps need to be constantly evolving, adding new capabilities, improving user experience and tightening security. Chatbots The best applications of automation are those that free up human workers from mundane tasks. Chatbots can do so by answering frequently asked questions and routing customers to the correct human employee. Their capabilities are expanding every day, making them one of the most exciting automation technologies in the industry.
Don't neglect security. Data breaches not only result in straight financial loses, but also erode customers trust in financial institutions. According to Accenture and the Ponemon Institute, banks lose the most to cyberattacks an average of $18.3 million a year.2 The technologies weve been discussing Artificial Intelligence (AI), IoT, the cloud and collaboration tools all make it quicker and easier for customers and employees to access and do more with data. However, this added connectivity can also make said data more vulnerable to outside attack. So, as these technologies are implemented and expanded, companies must make sure that their IT security is keeping pace. If they dont, threat actors will happily take advantage of weak points in their system. Blockchain: Is it the future or a passing trend? While discussing data security, wed be remiss if we didnt mention blockchain. It has almost limitless potential, but its still in the early stages of development for the financial sector. While many organizations recognize the importance of blockchain, there are still some companies that are unsure or unlikely to respond to the trend. So why all the buzz around this emerging tech? Blockchains are inherently secure. Because its a distributed ledger system, authenticity is simultaneously confirmed by everyone on the network. They also have the potential to be far cheaper than current platforms. Intermediaries, such as those who move money around, tax transactions, store information or adjudicate contracts, usually exact a toll on the transactions they interact with. Blockchain makes them superfluous and eliminates the associated overhead costs. $18.3 million a year lost to cyber- attacks Out with the old, in with the new. Though the events of 2020 may have accelerate our adoption of certain technologies, the financial services industry was already headed toward widespread us of AI, IoT and the cloud. Customers are increasingly trusting automated technologies for financial transactions and organizations have found the value in augmenting the human workforce with robotics. Financial organizations should focus on riding this wave of advancement instead of clinging to incumbent systems and processes. For this industry, its out with the old and in with the new.
About Insight Insight Enterprises Inc. empowers organizations of all sizes with Insight Intelligent Technology Solutions and services to maximize the business value of IT. As a Fortune 500-ranked global provider of Digital Innovation, Cloud + Data Center Transformation, Connected Workforce, and Supply Chain Optimization solutions and services, we help clients successfully manage their IT today while transforming for tomorrow. 1.800.INSIGHT | insight.com 1 Lohr, Steve. (2014, Aug. 17). For Big Data Scientists,Janitor Work Is Key Hurdle to Insights. The New York Times. 2 Ponemon Institute. (2019). The Cost of Cybercrime. Accenture.

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The Future of Finance is Tech

  • 2. The financial sector has always been on the forefront of technology adoption, so it should come as no surprise that headline-making innovations such as blockchain, robotics and cloud computing are cropping up across the industry. The COVID-19 pandemic only served to solidify our adoption of these technologies. Customers expect to conduct their banking via mobile phones and the workforce expects to be able to work from home. Times have changed, and changed fast. To keep up, financial institutions need to leverage technology. FinTech is more important than ever. Making big data usable. The term big data has become a catch-all buzzword for our ever-increasing stores of information. Essentially, its a companys vast pool of information that has the potential for remarkable insights. When organizations are able to analyze all that data, they can make more informed business decisions and create better customer experiences. But before valuable insights can be gleaned from it, data must be ordered and verified so its usable and trustworthy. According to The New York Times, in 2014 data scientists spent 5080% of their time curating and preparing data so it could actually be used.1 With the rise in data availability, this statistic is likely to have increased. Big data & the cloud Cloud computing and big data are closely intertwined. The cloud helps break down silos between data pools across an organization, leading to reduced fragmentation (and a lower cost of IT ownership). It also offers lower data storage costs and, on some platforms, built-in analytics capabilities. In short, the cloud makes naturally unwieldly big data far more manageable. Its an essential IT initiative for those organizations struggling to get more out of their data.
  • 3. The IoT In 2016, Citi launched a program in New York City that gave customers cardless entry into ATM lobbies after hours just by using their smart phone. This was just the latest in a series of new technology rollouts for the company, including enhanced ATMs that customers could use to conduct transactions typically reserved for tellers only. It may not seem like much, but this is just one area in which were seeing financial businesses embrace the Internet of Things (IoT), a connected web of smart devices. This technology really has the potential to revolutionize the industry. For example, IoT can be combined with big data to provide a more personalized customer experience. By analyzing customers purchasing and investment behaviors, banks can offer budgeting services or financial products that are relevant to their lifestyles. But the benefits of IoT arent limited to banking. Insurers can use it to simplify underwriting and claims processing, better determine risk and improve default predictions. It has the potential to increase efficiency in international trade flows by tracking movement, supply and demand, thus reducing cost and risk. All about automation The word automation is another term that gets thrown around when talking about innovative technology. But what does automation actually look like when it comes to the financial sector? App modernization Most B2C organizations (and many B2B ones) already have an app where their customers can complete transactions, answer basic questions and reach out for additional support. Thats a great start, but apps need to be constantly evolving, adding new capabilities, improving user experience and tightening security. Chatbots The best applications of automation are those that free up human workers from mundane tasks. Chatbots can do so by answering frequently asked questions and routing customers to the correct human employee. Their capabilities are expanding every day, making them one of the most exciting automation technologies in the industry.
  • 4. Don't neglect security. Data breaches not only result in straight financial loses, but also erode customers trust in financial institutions. According to Accenture and the Ponemon Institute, banks lose the most to cyberattacks an average of $18.3 million a year.2 The technologies weve been discussing Artificial Intelligence (AI), IoT, the cloud and collaboration tools all make it quicker and easier for customers and employees to access and do more with data. However, this added connectivity can also make said data more vulnerable to outside attack. So, as these technologies are implemented and expanded, companies must make sure that their IT security is keeping pace. If they dont, threat actors will happily take advantage of weak points in their system. Blockchain: Is it the future or a passing trend? While discussing data security, wed be remiss if we didnt mention blockchain. It has almost limitless potential, but its still in the early stages of development for the financial sector. While many organizations recognize the importance of blockchain, there are still some companies that are unsure or unlikely to respond to the trend. So why all the buzz around this emerging tech? Blockchains are inherently secure. Because its a distributed ledger system, authenticity is simultaneously confirmed by everyone on the network. They also have the potential to be far cheaper than current platforms. Intermediaries, such as those who move money around, tax transactions, store information or adjudicate contracts, usually exact a toll on the transactions they interact with. Blockchain makes them superfluous and eliminates the associated overhead costs. $18.3 million a year lost to cyber- attacks Out with the old, in with the new. Though the events of 2020 may have accelerate our adoption of certain technologies, the financial services industry was already headed toward widespread us of AI, IoT and the cloud. Customers are increasingly trusting automated technologies for financial transactions and organizations have found the value in augmenting the human workforce with robotics. Financial organizations should focus on riding this wave of advancement instead of clinging to incumbent systems and processes. For this industry, its out with the old and in with the new.
  • 5. About Insight Insight Enterprises Inc. empowers organizations of all sizes with Insight Intelligent Technology Solutions and services to maximize the business value of IT. As a Fortune 500-ranked global provider of Digital Innovation, Cloud + Data Center Transformation, Connected Workforce, and Supply Chain Optimization solutions and services, we help clients successfully manage their IT today while transforming for tomorrow. 1.800.INSIGHT | insight.com 1 Lohr, Steve. (2014, Aug. 17). For Big Data Scientists,Janitor Work Is Key Hurdle to Insights. The New York Times. 2 Ponemon Institute. (2019). The Cost of Cybercrime. Accenture.