The finance industry continues to evolve. Over the course of a couple years there have been rapid changes, including huge technology disruptions, leveraging AI, strengthening cyber resilience and an acceptance of ESG, sustainability, and diversity and inclusion.
But what are some of the future challenges that the industry faces?
Cybersecurity threats
The modern world of finance is filled with digital criminals. Cybercriminals whose main aim is to wait for the perfect opportunity to breach security. These threats, similar to pirates attacking ships, force financial institutions to strengthen their defences, secure their most valuable treasure (customer data), and to remain vigilant against breaches. One breach could mean a sunk ship, losing trust and causing huge financial losses.
But cybersecurity is improving, as AI enhances cybersecurity for the world of finance. And with AI continuously learning from new data, these machine-learning models improve their abilities to recognise and prevent emerging threats.
Embracing New Technology
Technology can solve a whole host of challenges faced by those in finance, and yet it’s also raising some valid concerns among leaders in the industry. In fact, in a recent survey by Price Waterhouse Cooper, 70% of the surveyed CEOs said they were concerned by the speed of change in technology.
From customer service chatbots to AI-analysed data sets, technology has become fully ingrained in our culture and is here to stay. Manual processes or systems will soon be a thing of the past, and those who do not embrace digital technology will be left behind.
Customer Acquisition and Retention
It’s a specialist art to hold onto customers – and gain new ones – in finance. A lot of an organisation’s revenue comes from repeat business (not a new concept, we know) but what is the key to customer retention? A report from Gartner stated that 69% of senior leaders view the role of customer service to drive retention and that loyalty is more important than it was years ago. But how can you drive value to retain customers? Validate their decisions, anticipate their needs and help them to achieve their goal. Gain their trust.
Some easy strategies;
Validate purchase decisions.
Anticipate their needs.
Help them to achieve their goal.
Teach customers better uses.
Introduce customers to new uses.
But how can business leaders face these challenges head on?
Those in finance must embrace innovation, prioritise compliance measures, invest in modern cybersecurity measures, and change their strategy when faced with economic shifts.
With many tech solutions at our financeSHOWCASE event in Manchester, be prepared. Register for your free ticket here
