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Digital Transformation and Its Impact on the Financial Services Industry

In the recent years, world’s financial institutions have dramatically increased the usage of digital technologies. The appearance of new technologies provides great opportunities for both financial organizations and their customers. Major world’s banks offer financial services through digital technologies, including robotics, which help to reduce the costs and simultaneously increase quality. This trend is determined by the demand of modern market as well as fast alterations of the financial environment throughout the world.

There is a range of various factors in the financial industry which directly influences the modern economy. One of such aspects is Brexit that implies the exit of the UK from the EU. Due to Brexit, there was the drop in the pound in 2016. It  has resulted in the rise of prices of goods and services, including IT products. That was the reason why many financial organizations of Britain were forced to find solutions through the usage of technologies.

At the same time, banks of Britain will face the situation, when they are not able to provide their services over the European Economic Area by leaving the EU. With this regard, many banks of France and Germany have expanded their investments in custom software development in order to attract those operations that are expected to move from the UK to Europe. For example, one of the world’s largest banking institutions, JPMorgan Chase & Co., is planning to relocate hundreds of bankers from London to Dublin, Frankfurt and Luxemburg. About 4000 employees will move  to those cities to enable the firm access to the single European market for financial operations and continue working with the European clients.

Another significant change in the world’s financial sector is connected with the forthcoming implementation of Markets in Financial Instruments Directive (MiFID) II regulators in 2018. The main purposes of the rules include transparency and investors’ protection. In regard to this, banks are expected to triple the amount of required information on transactions. Those alterations trigger banks’ concern about the further market turbulence and disruption of negotiations with clients.

According to the bar chart below, based on the survey of The Economist Intelligence Unit (EIU), the major priorities of the world’s banks for the years to 2020 include the previously mentioned fulfillment the requirements of MiFID II rules as well as improvements in the banks’ customer services strategies and digitization in order to meet challenges of modern society.

Financial organizations are able to meet those needs by conducting digital transformation, particularly, with the usage of Robotic Process Automation (RPA) technologies. The implementation of RPA facilitates institutions to challenge the increased demand of the financial market. World’s banks are able to provide competitive high-quality digital products and services. They can offer improved customer operations in the less possible time frame of minimum spending. Financial institutions have an opportunity to meet the deadlines and the requirements of regulators, meet transactional and operational risks and stay competitive in the aggressive environment by investing in robotic automation. RPA technologies help to automate repetitive tasks, management compliance as well as financial and accounting operations including payable and receivable accounts, analysis and reports. Simultaneously, RPA solutions make possible to reduce cyber risks and minimize the appearance of errors due to the implementation of resilience strategies.

By summarizing, RPA solutions and digital transformation enable world’s financial institution to keep up with global transformation in the financial sector. Lately, many banks have already proved the successful efficiency of RPA usage over the world. With the automation process, many banks have improved their customers’ services and met the client’s expectations in a cost-efficient way. These offerings are especially valuable in the situation in which the world’s financial organizations face the great challenge of forthcoming alterations.

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