With the new digital economy creating significant disruptions and new opportunities, it is not enough to have a digital strategy focused on solely achieving your business goals. Financial institutions must devise a holistic strategy focused on thriving in the new normal driven by new technologies and disruptive forces. However, ‘innovation in finance’ turns out to be the key to driving better outcomes through the use of strategies that empower organizations to strategically adopt disruptive technologies, such as AI, cognitive analytics, and cloud. Notably, true digital transformation can take place only if financial institutions proactively address challenges using the right approaches and technological frameworks.
Quantzig has commercialized its ability to drive innovation, digital transformation, and enhance process efficiency in the financial services sector through a global network of innovation centers. Our financial analytics center of excellence helps our clients address the challenges and capitalize on new opportunities brought about by continuous change and digitalization.
While most financial institutions struggle amid the COVID19 induced slowdown, those capable of creating innovative infrastructures will emerge successfully and achieve better outcomes. Request a FREE proposal to learn how we can help you accelerate innovation.
Key Elements Driving ‘Innovation in Finance’
With the complexities of business processes increasing with every passing day, banking firms are forced to expand their platform capabilities through the use of advanced platforms that help manage key business functions. As such the business platform has a crucial role in driving innovation in finance. Another reason prompting banks to enhance their platform capabilities is the growing need to integrate business functions and drive outcomes across key processes.
The ecosystem in banking comprises of the organization, the technology, the process, and the people associated with the organization. These factors are often interconnected to form a complex structure with interconnections.
Connector technologies play a crucial role in driving innovation in finance. It includes technologies that enable financial organizations to enhance process efficiency and integration. The benefits offered by connectors, including application programming interfaces (APIs) and really simple syndication (RSS), is that they help automate end-to-end business processes with minimal effort and resource usage.
The use of Cloud-based services and platforms enables banking firms and others operating in the BFSI industry to devise flexible strategies by providing a set of basic but essential infrastructure elements and capabilities like computer power, software as a service (SaaS), and platform as a service (PaaS).
Your organization will need to innovate and transform to meet the dynamic demands and address the challenges in the BFSI sector. Contact us to gain insights into the forces driving innovation in finance.
How Quantzig Can Help
With waves of digital transformations driving change in the financial services sector, businesses have witnessed changes across platforms and the organizational structure. Quite notably, ‘innovation in finance’ is often referenced in the context of disruption and comprehension of disruptive forces within the banking and financial services sector. Without such an understanding, many financial establishments will continue to act strategically by subsidizing start-ups or new projects when in reality, they need a structural uplift that must be dealt tactically through process innovation and digital transformation.
At Quantzig, we understand that the biggest challenge for insurers today is leveraging technology to build and improve their business while maintaining an essential personal touch. To strike the balance between adopting new technologies and maintaining the personal relationships that are critical to the success of businesses, we recommend the following action points:
- Conduct a thorough audit of applications to determine which alliances, partners, and merchants should be integrated into the ecosystem
- Actively identify savings opportunities and enhance operational efficiencies by focusing on driving innovation in finance
- Focus on the integration of old and new systems as you migrate to more innovative and powerful technologies
- Assess the business model to identify where changes are called for and respond accordingly to the evolving competitive landscape
Here are a few vital questions financial establishments should ask themselves before embarking on an end-to-end digital transformation journey powered by the adoption of technology and advanced analytics:
01. How do we develop data standards around transaction data, reference data, and more importantly sensitive customer information?
02. How do we build data security platforms that ensure the right level of authentication, authorization, and encryption?
03. How do we manage relationships with stakeholders including data attribute providers, third parties, and customers?