Digital Transformation Trends for Financial Services

They also need to prioritize staying competitive and keeping up with ever increasing customers’ demands. From a technical perspective we help clients migrate from legacy software tools that are holding them back and to update outdated mobile experiences for their customers. Compliance issues are also a concern for our customers in this space and digital transformation and automation can really help in this regard. Software bots are always on and can always be working so there is reliability in the collection of data needed for compliance as well as processes that must be executed.

Industry leaders are striving to embed a true digital financial experience, which is about a complete pack of services from personal finance and automated wealth management to on-demand insurance advisory, all in real-time at the customer’s fingertips. But, it’s a hefty investment with fierce competition for the financial sector players. Understanding that technology implementation alone isn’t digital transformation, but a part of the strategic journey is vital.

ESG initiatives, including diversity and inclusion (D&I), are growing as top business priorities across all industries, geographies, and company sizes. F&A teams need to implement solutions to monitor and report on non-financial data (e.g., carbon footprint, stakeholder experience, social impact, diversity of vendors, leaders, and employees). However, finance leaders won’t recognize the benefits no matter what digital technologies they implement if their data is a mess, said Steven Ehrenhalt, partner and U.S. and global leader of Deloitte’s finance transformation practice. “What that finance transformation does is enable finance to transform from being a scorekeeper in the back office to becoming a partner and really driving revenue and customer experience,” he said. “So unless digital transformation enables finance to move from the back office to an architect of value, I wouldn’t really call it transformation.” The most successful finance teams don’t frame their transformational initiatives as technology changes; they aren’t even calling them technology changes.

The Benefits of Digital Transformation

It’s about fundamentally rethinking how an organization leverages people, processes and technology to pursue a series of objectives. Digital transformation is the engine that will drive value creation and performance improvement over the next decade. The status quo is filled with manual, spreadsheet-driven workflows and fractured application ecosystems that may have been caused by failed attempts at digital transformation — and significant investments alone will not guarantee success. These issues have led to reduced data integrity and delayed reporting of financial and management information for decision-making purposes.

Why is Digital Transformation in Finance Important

The analytic power derived from data can also be used to make more accurate predictions that will help refine your strategies for business growth. Improve customer experiences – In this time of mobile phones, social connectedness, and social media, businesses have grown increasingly aware of the necessity to engage customers. By becoming a digital business that uses technology as an advantage, you can improve your internal and external processes to become more user-centric. When customers feel engaged, they are more likely to try a new product, become a reference or introduce you to their network. Digitalization in finance aims to innovate the corporate finance processes with the help of modern tools and advanced technologies.

Digital Transformation in Financial Services

We go beyond the UI that guides users through visual elements but mainly focus on the overall user journey. 78% respondents wish to prioritize the enhancement of existing capabilities of their ERPs, Data Analytics using visualization tools and Robotic Process Automation as deployment of emerging technologies. Data collection today might set you up for tomorrow, as assembling an efficient big data pipeline is an ideal way to prepare for big data itself, a buzzing and promising new technology in its own right. Externally, you’ll have to pay attention to the digital culture.The best way to get in on the current digital culture is to follow the latest trends. The internet moves fast, and things that were trending a couple of days ago can be dated today, so make sure to follow all developments and trends closely. The other applications of Blockchain in finance include one-time KYC verification, fraud reduction, efficient trading and many more.

Another 15% are planning to implement a digital transformation strategy by 2022. It is an emerging trend that is gaining momentum gradually and will play a significant role in digital payment solutions. It applies to various operations such as digital payment, loan processing, investment management, cross-border transactions and capital markets. It enables the prevention of fraudulent activities, provides enhanced transparency, increases transaction speed & more.

Advancing efforts to digitally transform allows F&A teams to focus more on business strategy, emerging technologies, data and analytics storytelling, and critical areas impacting the global economy, such as ESG . They also see plenty of clouds on the horizon – the digital kind, that is. Cloud is also becoming the default platform for enterprise performance management solutions. A centralized, secure ledger system of blockchain technology can offer strict controls to audit data and smart contracts. It also increases the user or customers’ trust by increasing transparency and reducing the risks of human errors.

Cloud databases, warehouses and storage

In this article we highlight the importance of digital transformation in banking, the benefits of digital transformation for banking and finance, and challenges facing banking and financial institutions. While you are innovating to produce safe, reliable, and sustainable products and services, our solutions help accounting teams save time, reduce risk, and create capacity to support your organization’s strategic objectives. Process big structured and unstructured data, and further visualize it in a transparent and ethical way to actually generate value. As we move deeper into 2021, we see the industries taking on the challenge to recalibrate for resiliency within our modern business environment.

  • As the industry progresses and the solutions become clearer, there are exciting new opportunities for the financial services industry.
  • Digital banking allows customers the convenience of depositing checks, transfer money, pay bills, check transactions, and apply for loans through mobile devices.
  • However, finance leaders won’t recognize the benefits no matter what digital technologies they implement if their data is a mess, said Steven Ehrenhalt, partner and U.S. and global leader of Deloitte’s finance transformation practice.
  • Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
  • DTTL and each of its member firms are legally separate and independent entities.
  • Improve customer experiences – In this time of mobile phones, social connectedness, and social media, businesses have grown increasingly aware of the necessity to engage customers.

Those that experience a breach will face serious consequences, including the loss of money and reputation, as well as legal claims and sanctions. The types of organizations affected span the gamut—from 100-year-old banks and insurance providers to FinTech start-ups started less than a decade ago. Regardless of whether a business was born in the digital era or is now catching up to it, none remain unaffected. In addition, 71% of survey respondents reported they are investing in technology to assist with measuring and reporting on environmental, social and governance risks and issues — an emerging area of compliance affecting virtually every company in every sector. Riley agreed with this assessment, saying that the Seattle Sounders aren’t quite seeing the benefit of having all of the organization’s data accessible to all the finance functions. “And this age of digital transformation is requiring them to go into uncharted territories of intangible value,” Noah said.

More and more financial service firms are turning to collaboration over competition with technology vendors as they recognize that ecosystems are a major opportunity for business in today’s world. The companies are now expanding their partner pool while engaging system integrators and vendors in order to leverage the potential of innovations and technology to increase operational efficiency and deliver enterprise solutions at scale. Put simply, the widespread adoption of cloud computing and big data analytics, new and emerging forms of engagement, and evolving customer expectations are changing the financial services landscape. Firms leading the charge into this new era are reimagining the customer experience, fostering a new culture of work, optimizing operations, and driving product innovation. They are doing this by utilizing advanced technical and analytical infrastructures that are extensive, scalable, affordable, and able to analyze and manage big data in a timely manner to keep pace with the demands of digitally savvy customers.

The success of these innovative products has inspired various fintech startups to come up with such user-friendly solutions for online transactions. With a solid grasp of advanced development frameworks, our team is able to deliver extended functionalities and capabilities in your product. Imaginovation creates applications that provide superior user experience, seamless integration, and top-grade security. Rathbones, Ally Financial and Aon are some of the financial institutions who use brand management software to align and educate their internal teams about what their brand stands for. Their people understand how to communicate externally in a consistent voice, thereby building a great brand experience for their customers and prospects on and off-line. Igital transformation in finance is a concept which has now become part of a successful business strategy rather than just technology.Digital transformationhas made a positive impact on business operations.

As the speed of business increases, the finance function must find new, faster and more efficient ways of performing routine, core processes. Any digital transformation strategy should take cybersecurity into account. When choosing new technology, partners, platforms and vendors, their respective cybersecurity standards and accountabilities need to be clearly understood. Digital transformation entails significant changes to an organization’s use and application of technology , while IT transformation entails significant changes in the IT services, structure, and hardware and software provided by the organization.

The Anatomy of Digital Transformation in Finance: from Disruption to Transformation

The number and complexity of integrations between the financial software and the required systems. The possibility to reuse the existing financial software and infrastructure components. Delivered custom debtor management what is digital finance transformation software that automates debt collection procedures and integrated the solution with the customer’s accounting system. Turn to ScienceSoft for a winning digitalization strategy and goal-oriented project planning.

Why is Digital Transformation in Finance Important

The article explains the importance of digital transformation in the financial sector and discusses the technologies that reshape finance functions. Digital transformation is a result of the implementation of such revolutionary technologies. Digital transformation in finance refers to restyling of financial services by utilizing technologies to make the existing system significantly better.

Data compliance, account security, and authentication are more important than ever. Financial institutions need to remain compliant and protect customer information to reduce their risk while also providing customers with a friction-free customer experience that ALSO creates demonstrates their vigilance. Best-in-class financial organizations that build flexible layers of security into their technology stack will be able to fortify even the creakiest of legacy systems with modern protection that will reduce risk and improve reputation. With the ability to access and execution on real-time data, financial institutions are able to make intelligent,data-driven decisions and become more agile, like their FinTech industry disruptor counterparts.


Not only is this the premier way to improve many internal and external business operations, but it’s also a proven way to provide better customer service while reducing costs. These days, almost every business has a digital presence, and those without it are missing out on a significant portion of the market. In this article, we’ll provide a high-level overview of digital transformation in the finance industry, what you can expect from a data pipeline, as well as define some of the most prominent benefits of putting your company through such a transformative process. Blockchain is a distributed technology that acts as a decentralized database and provides absolute security to its financial data. It implements advanced encryption algorithms to safeguard data and verify transactions.

ScienceSoft takes great care of encouraging your team to shift to the new tech-driven workflows. Already at the planning stage, we prioritize the initiatives that bring prompt and clear improvements to the regular finance-related tasks, thus showing the innovations in an appealing light. Turn your corporate finance into a value driver for the entire business with the paramount capabilities of AI-based big data analytics. Analyze and model finance up to x100 faster, forecast financial outcomes with 90%+ accuracy, and increase the company’s overall profitability with data-driven decisions on financial and strategic transactions. She has over two decades of experience as a marketer and has helped fintechs, financial service organizations, and healthcare organizations level up their marketing strategies. Maureen has a Bachelor’s of Art from San Jose State, and an MBA from the School of Failed Startups.

Digital Transformation Benefits for Banking and Financial Institutions

As McKinsey & Company points out in a recent article, “Today’s CEOs and boards say they want CFOs and the finance function to provide real-time, data-enabled decision support. BlackLine partners with top global Business Process Outsourcers and equips them with solutions to better serve their clients and achieve market-leading automation, efficiencies, and risk control. By outsourcing, businesses can achieve stronger compliance, gain a deeper level of industry knowledge, and grow without unnecessary costs. More than 4,000 companies of all sizes, across all industries, trust BlackLine to help them modernize their financial close, accounts receivable, and intercompany accounting processes.

Also, they cut down on paper waste, improve energy efficiency, and reduce commuter-related emissions. Is the most obvious, yet the most complex layer of transformational initiatives. While moving towards agile workflows, decentralized decision-making, and altering business ecosystems, it is all about changing human mindsets, both simultaneously from the beginning and as a result of the digital transformation process. In today’s digital world, it is important to quickly adapt to market trends to stay relevant in the business.

In our digital transformation projects, we employ mature quality management and data security management systems backed by ISO 9001 and ISO certifications. The drive towards digital transformation is far from complete despite the lack of meaningful articles in the industry . Banking organizations are still working towards a better customer experience.

The types of data the software should be able to process (financial data, asset-related data, supplier and customer data, etc.). Since 2007, ScienceSoft has been helping companies digitally transform and innovate their financial management processes. As communications strategies evolve, there are bound to be a few bumps in the road. Banks across the spectrum of digital maturity are upgrading their experiences. See how NatWest helped implement a Twilio solution that reimagined their customer experience to include robust and adaptable customer communications.

Digital Transformation Of The Finance Function

Good governance—encompassing everything from planning and forecasting to implementation and execution—is critical to any company-wide initiative, but isn’t easy. Establishing the right metrics to measure progress is financial services’ biggest challenge to moving forward with a new digital initiative . This percentage rises to 46 percent among lower middle market companies that may not have as much experience managing initiatives of this scale. Common financial services IoT applications today range from providing usage-based insurance to analyzing biometrics data to improve the credit underwriting process. Within an organization, IoT devices, such as smart sensors, can help improve workforce dynamics by tracking employees’ movements and working habits, and reduce building management and utility costs. On top of all this, financial services companies are no longer just competing with other financial firms for consumers’ attention, but with any company that’s offering a positive customer experience—including other brands.

Leave a Reply

Your email address will not be published. Required fields are marked *