Trying to stay ahead of the curve when it comes to IT issues is a challenging task. Emerging technology forces in the financial services industry are already impacting business. The convergence of these forces does present challenges; however, it also provides a window of opportunity for financial institutions to elevate business performance and gain a competitive advantage. Perficient provides a monthly perspective on some of the most talked about IT issues and emerging trends to help industry professionals identify and rationalize their IT investments.
Digital Innovation Through Acquisition
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Banking leaders are focused on exploring new technology and business models needed to evolve. The pace at which digital and mobile is directly impacting how consumers engage with brands making the delivery of banking services, digitally, both a challenge and an opportunity. There have been several key non-bank mobile and fintech acquisitions the past few months and we suspect that this will continue as a trend in the industry as others seek to grow their market share.
- Lessons from BBVA’s Simple Acquisition: It’s Time to Build Better Banks
- BBVA Makes Banking Simple
- Scoping out the BBVA/Simple Deal
- Banks Falling Behind Pace of Innovation in Mobile Apps
- Jack Henry Acquires Banno
- Bottomline Technologies to Acquire Andera
Garter has forecasted that, by 2016, poor return on equity will drive more than 60% of banks worldwide to process the majority of their transactions in the cloud. The explosion of digital banking and the complexities it has introduced for banks is forcing many to look for ways to simplify their IT environments. Banks also continue to operate in silos and struggle with building a comprehensive view of the customer needed to engage and personalize the banking experience. While there’s no “one-size-fits-all” solution, cloud computing can help banks overcome data challenges, get a 360 degree view of the customer and gain a competitive advantage.
- The Pros and Caveats of the Enterprise Cloud
- The Path to Customer Centricity Through the Cloud
- 7 Steps for a Successful Cloud Implementation
- Banks Pushed Toward Cloud Computing by Cost Pressures
- [Video]: ‘Cloud Banking’ is a Game Changer, IBM Says
The use of APIs and integration to diversify and advance product offerings is the future of financial services. Innovators at some of the well-established financial institutions are extending access to banking services for developers and partners in today’s digital economy to deliver new products and services in the marketplace, personalize experiences, add new mobile services and protect people’s privacy through authentication.
- Drumbeat for ‘Open Banking’ Grows Louder
- Open Bank APIs Connects Third Party Apps Like Mind or Foreign Languages to Banks
- Hack [Make] the Bank: API and Innovation
Compliance a Top Tech Investment
Regulatory change continues to be an unavoidable expense and a top priority this year for financial institutions. Many banks like JP Morgan will make significant investments to improve controls, systems and processes for AML, KYC and client onboarding which will derisk the company and boost operational efficiency. When it comes to technology investments to address regulatory compliance, it’s critical to choose a solution that can quickly adapt to changing requirements.
- Retail Bankers Unprepared for the Future
- Banks and Capital Markets Firms to Boost Compliance Spending by 10%
- The Regulatory Pressure Cooker: Retail Banks Evaluate Their Budgets
Social Listening & Analytics
Social networks have become the place where consumers engage with brands, make purchasing decisions, ask for help, and publicly share both positive and negative experiences with products and services. Although a lot of financial institutions are on social media and have adopted strategies and policies for social media, not all are leveraging the unstructured data to help gain a complete view of their ‘socially engaged’ customers. Although banks and credit unions face a number of unique regulatory, legal, privacy, security and compliance issues, they are no excuse for financial marketers to shy away from social channels.