Modern technology challenges facing the finance sector

April 29th, 2019
Modern technology challenges facing the finance sector

Digital transformation has definitely changed the business landscape. But how does the finance industry keep up with today’s ever-changing technology? Presently, financial services, including spanning payments, banking, insurance, asset management, brokerage, and more, are still battling with several challenges concerning modern technology.

But facing these problems head-on will only make the finance industry more knowledgeable of their IT environment, so it can anticipate cyberthreats better, mitigate damages caused by cyberattacks, and leverage new technologies. Here are some IT problems that the finance industry faces.

#1 Cyberthreats

As an industry that safeguards customers’ money, assets, and information, the finance sector needs to put cybersecurity at the top of their priorities. Cyberthreats can halt operations altogether and cause irreparable damage to your company’s image. What’s more, they can cost you money that can otherwise be used for improving your firm. In fact, it has been predicted that businesses worldwide will spend $101.6 billion on cybersecurity in 2020.

#2 Cost of services

Downward price pressure was one of the most common business issues in 2018. Multiple factors are driving this concern, but it can still be solved by focusing on making your firm’s high-value expertise more visible in the marketplace. This means giving more emphasis on your experts who are widely recognized in the finance industry, so you can command higher billing rates.

To do that, you can hire a managed services provider (MSP) like Integrated Technology Services to handle your IT issues, so your experts and other employees can focus on your company’s core goals without worrying on IT-related tasks. This way, your employees can really take their time in working on the bread and butter of your firm — finance services.

#3 Automation, artificial intelligence (AI), and other advanced technologies

Because technology is constantly evolving, keeping up with it isn’t the problem anymore; the real issue is being replaced by it. If your business is offering just a routine compliance service that a cheaper AI-powered solution can offer, which service do you think will the average customer use?

Several advanced technologies, such as virtual reality, AI, advanced analytics, biometrics, and robotics, are already within reach for many businesses. For instance, companies use sophisticated algorithms to automate underwriting of loans and insurance.

But technology experts have their own advantages. For instance, it is easier and faster to conduct business through digital channels, but there is more value in assessing customer needs in depth and creating personalized solutions for them, which can only be done by experts in the field. The best solution is finding the balance between relying on experts and doing some aspects of the business digitally for efficiency.

#4 Competitors

With modern communications technologies, location doesn’t matter anymore when it comes to competition. Now you can compete with a business on the opposite side of the globe. With this, downward price pressure and commoditization of services aren’t so far behind.

Therefore, your company should recognize your value as a firm, improve the services you provide, and emphasize how you stand out from other firms. Then, develop a program to market this unique value to potential clients.

Does your Charleston, Goose Creek, or Mount Pleasant financial firm need an MSP to take care of your IT needs? Contact Integrated Technology Services now and benefit from our proactive infrastructure monitoring, data backup, cybersecurity, and other services at a flat monthly rate.