Twin forces of change—competition and regulation—continue to reshape the financial services industry. The global financial crisis in 2008, and rapid digitisation as a result of the ongoing pandemic, have helped shift the financial services industry landscape, opening the traditional ecosystem to agile, innovative start-ups and adjacent industries.
Thanks to affluent digital natives, new technologies, and economic factors as mentioned above, the rules of banking are changing. Banks without branches, insurers without agents, and brokerages without brokers. Increasingly, even tech companies like Google, Amazon, and Apple are moving into the banking sphere.
For IT Executives, this is a time of opportunity. To compete in a market that isn’t necessarily won by offering the lowest rates, financial services companies are undertaking digital transformation initiatives that help them reshape their businesses while they overcome common hurdles: legacy systems of record, data silos, outmoded analytics systems, risk-averse and change resistant corporate cultures, increasingly sophisticated cybercriminals, the financial cost of data breaches, and new privacy mandates.
Adopting cloud services is a key component of this digital transformation journey, yet heavily regulated and security-conscious financial services organisations have been understandably hesitant to go all in. According to Microsoft, this reluctance to fully embrace cloud is bearing consequences as organisations experience continued complexity of business operations and underlying systems.
Yet the advantages of cloud services are immense: By tapping cloud innovation, you can use valuable business data to improve the customer experience, streamline operations, transform products and services, and increase organisational value. Both newcomers and traditional companies can create new opportunities.
In this whitepaper, Microsoft explores risk management in the cloud, and the next generation of banking and transactional systems. The paper also outlines various approaches that can expedite your ability to become a data-driven organisation, including how to apply innovative Azure services throughout the process of digital transformation.