IT in the Financial Services Industry: Challenges from Technology & How to Overcome Them
Technology in banking continues to grow at a rapid pace. At the forefront, we have come to expect a secure environment and easy-to-use online and mobile banking solutions, but there are so many exciting technological changes in store for the banking industry – one that depends on technology more than most.
Banking continues to change as we move into 2017. To think, the ATM was just introduced to the United States in 1969 – and mobile banking on apps has only been around since 2010. Because of rapidly improving technology and increased customer demands the banking industry faces several unique challenges. As a financial services IT consulting expert, we examine each of these challenges and how banks can overcome the hurdles technology in banking poses to them on a daily basis.
Lack of Technology Expertise
For an industry that depends on security more than any other industry in the world, financial services companies are lacking when it comes to understanding technology in banking. A recent document put out by Accenture.com states that among 109 of the largest banks in the world, 43% don’t have any board members with professional technology backgrounds and only 3% of their CEO’s have a background in technology. When it comes to understanding security concerns and implementing truly impactful strategies to evolve and adapt to the ever-changing landscape of technology in banking, these numbers are quite alarming to us.
Financial Services IT consulting services are definitely needed in the banking industry to help key decision makers improve digital processes and understand their risks.
For an industry built on personal interactions, the human element of banking is unfortunately on the way out. Customers demand simplicity and don’t want to spend their Saturday mornings at the branch even if it’s a quick in-and-out visit.
Branches are disappearing while 100% online banks like Ally continue to pop up and thrive.
It’s one thing to have a digital presence, but showing off is half the battle. User experience needs to be seamless between desktops and mobile devices, while additional features like mobile check deposit and bill pay are in high-demand.
Maintaining a Secure Environment
Banks need to be secure both online and off while the security hurdles facing banks are countless. Transitioning to pin and chip cards, enabling an SSL online, keeping up with demanding regulators, managing remote workers, implementing biometric security measures and other authentication protocols are all aspects that banks need to consider when it comes to security.
The banking industry is 300% more susceptible to cyber-attacks than any other industry. In 2014, JP Morgan Chase, one of the biggest banks in the world fell victim to an attack compromising 83 million records that could have been avoided had the proper protocols been in place.
Undoubtedly BYOD and work from home policies need to be extremely well thought out to work in an industry that deals with so much confidential information for so many people.
Adapting to Growing Technology that will Change the Industry
While cash may always be king it isn’t going to be making a comeback anytime soon. Debit cards may be next to go out the door, as bitcoin, PayPal, Apple Pay and other new payment methods surface in the future.
Along with how people pay, technology in banking needs to adapt to considerations like the internet of things, with multi-factor authentication including biometric, facial recognition and other futuristic password replacement measures coming to the forefront.
When a bank doesn’t have the expertise or time to keep up with the ever changing world of technology in banking, a Financial Services IT Consulting expert needs to step in to allow those crucial needs to be addressed.
Trust a Financial Services IT Consulting Expert
A profitable financial institute depends on efficient operations, solid risk management and responsive IT solutions. With a team of IT experts with a proven handle on IT in financial services, ThrottleNet can help banks, credit unions and other financial institutions in the St. Louis area eliminate risk, improve processes and take the busy work out of managing technology in banking.
As a financial services IT consulting expert, we understand the vital software programs that financial firms depend on every day. Along with developing data backup solutions and planning for unthinkable disasters, businesses depend on ThrottleNet every day.
Contact us today to learn more about how ThrottleNet can be your financial services IT consulting expert.