Digital Transformation in Financial Services
8 June 2017
If it can be said that one particular industry is forging ahead with digital transformation, it would be Financial Services. In fact, it’s so technology focused that is now has its own shorthand – Fintech. The industry is constantly finding new ways to allow us to pay for goods, send money to friends and manage our investments. It’s a very exciting time in the market.
Gone are the days of cheque books, waiting in lines at banks or even just paying with cold, hard cash. The Financial Services industry has revolutionised at a truly impressive rate, investing large sums in new technologies and products. They are committed to making the customer experience speedy and seamless. Today’s transactions take seconds, rather than minutes.
Perhaps, for some people (both customers and those working within the industry), it all seems like too much, too soon. There is a slow trickle of reducing human interaction and saying goodbye to an entire way of doing things.
Here are just some of the implications of digital transformation within the Financial Services industry.
Less bricks and mortar
In the same way that streaming services was the kiss of death for Blockbuster, the fact that we are doing most of our banking online these days means there is less of a need for an actual, physical bank to be there. Some high street banks are manned by skeleton staff, with the transactions being done by machine. This has serious implications for rural or elderly communities, where access to an actual bank is the only way of sorting out your finances.
Besides the fact that contactless payment on our cards mean we don’t even need to carry cash on us any more, new currencies such as Bitcoin are emerging. Bitcoin is a purely digital form of currency, not held up by any national government. Whilst it is still relatively shrouded in mystery – making some companies wary of accepting it as a form of payment – the fact is it exists and is being used. It proves that currency no longer has to stem from a national bank.
The recent hacks to organisations such as the NHS, Yahoo Mail and Talk Talk have taught us one thing – companies need to up their security measures. With new technologies comes new risks and the easiness of having your entire banking history on your phone is a tempting prospect for hackers. Banking apps can now require fingerprints and passcodes, online banking can require PINs and passwords. The ultimate responsibilities lies with the service provider.
Different banking experiences
54% of people in the UK made a payment via a banking app last year. Our smartphone addiction means that we want our whole lives to be accessible via a few taps of a button. Developments in financial technology mean we can send cash to our friends, buy products online or deposit money from one account to another within a minute. This can be via banking apps or systems such as PayPal.
This is a really exciting time within the financial and banking industry as with digital transformation, comes new opportunities.
If you would like to discuss Fintech recruitment or available roles with me, I would happy to chat with you confidentially. Click here to see my contact details.
Written By Shona Preston