Experts identify types of technology dominating the financial services industry

Experts identify types of technology dominating the financial services industry | Insurance Business Australia

Experts identify types of technology dominating the financial services industry

The financial services industry has been focusing on digital transformation, even before the COVID-19 pandemic started, to adapt to changes in the market and customer needs. With various types of tech solutions worldwide, experts have now identified the types of technology that will help organisations succeed this year.

A joint report by Economist Intelligence Unit and Appian showed that executives and IT decision-makers in the financial services industry considered the cloud as the most important technology to help organisations succeed over the next 12 months.

Luke Thomas, vice president of APAC at Appian, explained that the cloud helped financial services organisations scale operations quickly and effectively during the COVID-19 pandemic as collaborative tools that were previously used occasionally can now be used almost continuously. In addition, online-only models for customer service enabled major banks to improve customer service experience.

However, the 2021 Thales Global Cloud Security Study warned organisations that the increase in cloud adoption have resulted in a rise in cyberattacks targeting cloud data, with around half of survey respondents in Australia (51%) and New Zealand (43%) reporting a cloud breach in the last year.

Read more: Cyber insurance popularity: From being a flop to reaching the top

Other types of technology deemed crucial for organisations' success over the next few months are AI and machine learning, data science and analytics, automation technologies, internet of things (connected sensors), collaboration tools, digital payment technologies, 5G mobile, and mobile working tools.

Neil Morgan, chief operating officer at Insurance Australia Group (IAG), said the group has seen a 50% increase in app usage at one of its core brands, NRMA Insurance.

“COVID-19 has definitely accelerated the appetite for customers to use the digital channels that historically they may not have done. The question for us just keeps coming back to how much we can take advantage of that change in behaviour,” Morgan said, as reported by Consultancy.com.au.

Meanwhile, Joe Soule, chief technology officer at Capital One Europe, said the bank's long-standing investments in digital automation enabled it to continue serving its customers in various ways online, with many customers who had traditionally used the phone started using the bank's web channel.

However, the joint report by Economist Intelligence Unit and Appian warned about several barriers preventing organisations from achieving their digital objectives.

Business decision-makers identified security or regulatory concerns as the main barrier preventing their organisations from achieving their digital goals, followed by:

  • Lack of access to the right technical talent;
  • Inadequate collaboration between the IT function and business units;
  • Slow pace of IT delivery; and
  • Lack of budget and investment.

IT decision-makers also highlighted security or regulatory concerns as the main barrier preventing their organisations from achieving their tech goals, followed by:

  • Inaction due to legacy IT systems;
  • Lack of budget and investment;
  • Inadequate collaboration between the IT function and business units; and
  • Lack of access to the right technical talent.