The global financial industry is on the verge of a huge change. The traditional financial services industry is witnessing the blurring of the boundaries between industries and services, centering on ‘digital’. What should the financial industry prepare for, and where should it go, looking at the emergence of new players, a new level of customer experience created by digitally-strong companies, and customers cheering for it?
The financial sector in an era of uncertainty
As of 2020, the financial sector is facing challenges of entering the market by digital native companies, increasing customer demand for innovative financial products and services, and managing IT-related risks and complexity. We are also facing a change in uncertainty due to the COVID-19 outbreak. How can we move more flexibly and agile in an era of big changes? This is a common problem in the financial services industry.
So how do you achieve agility? Recently, the financial market is changing the way business is done. Gone are the days of competing for financial products and services. Now we differentiate ourselves by putting the customer experience at the center of everything. Customers’ expectations are higher, and their needs are diverse. It is becoming increasingly difficult for a single financial institution to accommodate everything. Naturally, alliances are becoming active, and an ecosystem is being built around the service platform. To respond to these changes, innovation in the aspects of people, systems, and processes is not enough. The way we work must change, and a more agile and efficient collaboration culture must be established.
Factors Accelerating the Digital Transformation of Your Financial Business
The financial industry, on the one hand, must find ways to grow sustainably and, on the other hand, prepare for competition from new operators entering the market by creating new categories. To this end, the financial industry is betting life and death on digital transformation. The recent digital transformation craze blowing in the financial industry is another competitive stage. The digital transformation of the financial industry is taking place in four areas: customer experience, artificial intelligence, ecosystem and open platform, and agile organization and culture. Customer Financial Software development companies like https://www.scalosoft.com/industries/finance-services/ making a big difference in the market.
Financial institutions start their alliances by expanding their sales channels for financial products by collaborating with companies in other fields, such as telecommunications and retail. When the relationship is strong, the alliance goes beyond channel expansion and leads to customer insight through data collection and analysis. If progress goes further, they will join hands to build and operate a new service-based platform. Software development firms like https://fis-sst.com with intense knowledge have started to provide a lot of help for companies to grow in their perspective fields.
In this process, the alliance network takes the form of an ecosystem, and as several companies participate, an open platform, a business stage for everyone, is naturally completed. My data platform is an example of an ecosystem built around an open platform. Currently, companies in various industries such as financial institutions, fintech, distribution, and telecommunications are showing great interest in this business. Once this business is established, alliances in the financial industry are expected to become more active, and financial products and services that have not been seen before will appear based on various platforms.
It is not enough just to agree and empathize with the business models and strategies among the participating companies in order to take advantage of the flow of companies gathering around a giant platform, where new business opportunities arise. Chemical bonding is required in various aspects such as tissues, systems, and processes.
In terms of systems, it means that linkage and integration should be possible with flexibility and agility. For example, what if it takes a long time to prepare the system required for alliance? Businesses under these conditions are highly likely to be marginalized from participating as a member of the ecosystem.
