By Tim Johnson, CloudBees
A decade from now, financial services organisations and operations are going to be a far cry from their current counterparts. As they embrace trends to offer more digital capabilities to a global population, financial institutions will also need to focus on customer service and keeping things personal. The financial world will be dealing with more players than ever, which means navigating more security threats than ever before. It’s a tough balance to strike, and FinServ companies are going to need the right technology partners to make the transformation successful.
Global connection. Personal attention.
Financial services are becoming more accessible to more people at a historic rate. Perhaps the most visible result of this trend is the rise of cryptocurrency. Going forward, we will likely see that trend grow into an even more standard globalisation of currency, such as a digital currency unlimited by geo-political boundaries. What Bitcoin and the Euro have started may be a path toward a truly connected global economy with financial opportunities we couldn’t have even dreamed of just a few years ago.
Perhaps ironically – but not surprisingly – the opposite of global banking is also on the rise in financial services. Customers aren’t just looking for convenience and lucrative opportunities; they also want to experience a personal connection with their financial institutions. As digital capabilities grow, we may see a resurgence of the brick-and-mortar branch, where people can physically go to get personalized service and hands-on instruction.
Think of how an Apple Store is always packed, yet customers can call a rep or schedule an online appointment at any time. AI is consistently getting better at handling expertise and logistics, but humans are wired to seek belonging, and the finance world could create some serious brand loyalty by turning in-person services into don’t-miss opportunities for their customers.
Digital migration for both currency and customers
No one is surprised to see the rise of digitisation in the FinServ industry. We are seeing economies go increasingly cashless, with street performers touting card readers and shoppers making payment without making contact. Peer-to-peer lending and microloans are available on mobile and more digital wallets are being used each day.
What may be more surprising to finance folks will be the rise of more people playing the ‘developer’ role. With more users utilising online finance apps, more people will be taking part in the entire process. First, finance experts will weigh in on development, but eventually customers themselves will play a role in creating their own digital experiences. Users will be able to design their own loans, single-handedly curate a portfolio, and access tools previously only used by a few financial wizards.
We’ll also see a surge in end-to-end user involvement as customers weigh in on how they want their banking experience to be and take it upon themselves to curate it. Developers will be taking direction from more people than ever, and those users will be putting the tools developers create into play in their own personal ways.
More involvement means more security needs.
With users doing more things, financial institutions are going to need increased regulation. Compliance like it is today will be impossible because the current process just won’t be able to keep up with the future system’s demands. To do so, automated compliance will be a must.
Financial institutions will need to embrace continuous compliance, where regulation is baked into the entire software delivery process. Continuous compliance ensures that software is constantly monitored and updated to meet regulation standards. With more users causing more breaches as they take a very active role in digital banking, regulators won’t be able to keep up without automation.
In fact, regulators will likely need to take a more active role in the design process to help build in compliance from the get-go. This, along with the right software delivery partners, will remove some of the “shift left” burden that is being placed on developers to factor in compliance from stage one. Regulators will move from being faceless entities to involved partners with a say in the entire software delivery process.
Tech partners that enable transformation
As financial services institutions navigate these changes, they need to adopt the right technology partners to help them reach their goals successfully. Partnering with the right software delivery solution means enabling continuous compliance and allowing companies to grow and adapt without sacrificing security.
Shifting to continuous compliance also gives greater visibility into and control of software delivery, which in turn makes digital offerings more flexible, responsive, and user-friendly. It provides a continuous, up-to-date, holistic picture of the software delivery life cycle – which will be essential with the number of users expected in the future.
This process also removes the dreaded “compliance tax” where organisations are paying people to maintain compliance, instead of putting them to work in value-generating roles. Continuous compliance frees up more time for organisations to focus on innovation, customer service, and making the most of the other trends that are on the rise in the world of financial services.
Things are changing at a breakneck pace in the world of finance, and financial institutions are poised to completely overhaul how people manage wealth by 2030 – with the right technology, that is.