5 Technology Trends for the Financial Industry
Let’s face it: the financial industry isn’t exactly the most innovative in terms of embracing emerging technologies. Growing regulations and legacy systems have limited the industry to a certain extent and principals are hesitant to adopt new technologies because of the perceived unknown variables. But with the Baby Boomer generation beginning to exit the workplace, there is new pressure to cater to a tech savvy employee and customer base. In the coming years, we should begin to see some changes in the financial industry as banks and investment firms attempt to cater to a new demographic. Here are a few technology trends for the financial industry that we can expect to see become more prevalent in 2015:
With millennials beginning to enter the marketplace, employee satisfaction is becoming more and more important. With many other industries already embracing mobile business applications, the financial industry will feel more pressure and begin yield to it in 2015. By adopting mobile applications or having proprietary applications developed, the financial industry will cater to the emerging workforce and recruit younger talent that will demand even more technology in the workplace. BYOD will become a necessity, requiring more financial and investment firms to explore mobile device security as it relates to data compliance. (Check out these great financial services apps.) These innovations in mobile technology will only fuel the fire and bring on additional technology projects and enhancements to systems.
With mobile devices and flexible work locations a must if employers hope to attract the emerging workforce, this will lead to the discussion of cloud deployments. In an effort to address efficiency, productivity and cost in 2015, financial and investment firms will begin to more seriously explore and deploy cloud storage solutions. Clunky onsite servers will be replaced with fast, redundant internet service connections that give employees on the road or at a satellite location a reliable way to connect to the data that they need. This will give financial services even more of an edge and open new opportunities for better ways to service customers as well.
A Move Away from Legacy Systems.
Over the last decade, many financial services firms have begun to experience the limitations that exist with legacy systems. While these larger frameworks may remain in Enterprise banks and government organizations for now; smaller financial institutions, financial services and investment firms will begin to explore how custom application development can service their processes and workflows.
Big Data Projects.
With more available data in customized applications in 2015, firms will use it to launch data projects, gauge trends and decision making, identify target customer demographics and make even more sound decisions for their customers. Understanding more about how their customers make decisions will allow these companies to decrease their attrition rates among existing clients and customers.
High Tech Customer Experience.
Millennials aren’t just demanding of their employers, they’re demanding of the companies that they work with. All of the technology changes and enhancements that banks will be addressing in 2015 will also help financial firms give their customers a more mobile, tech-driven experience with their services and accounts. Mobile applications, robust customer portals and customized content are just some examples of how banks and investment firms will be innovating in 2015.
When you’re under so much pressure to regulate and comply with demands on your industry, change isn’t easy. In fact, most financial institutions and investment firms are still avoiding innovation for this very reason. The perceived interruption to their business causes them to pause: If it isn’t broke, why fix it? But with customers and employees demanding innovation and technology at every turn, in 2015 we predict that fewer and fewer financial firms will be able to ignore the demand technology.
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