For finance and IT decision makers in the financial sector laws and regulations are the main priority for 2017. That represents technology service Synechron based survey of 200 senior decision makers from the financial sector.
Especially MiFID II and Dodd-Frank have given a high priority. Also, data management, systems, artificial intelligence and digital transformation are among the main priorities for this year.
The financial sector in recent years subject to a period of rapid change. The increasing competition by allowing new players makes their entrance from outside the sector on the market. It takes importance of innovation, while legislation on the other hand governments and tighten regulations to prevent continuation of the 2008 financial crisis. Also on the consumer front unfold rapid change.
Consumers and traders have become increasingly critical of the performance of financial services. At the same time their expectations for service and service banks become higher and desire for new products and services, including 24/7 service support mobile and digital payment options.
In view of these developments, see decision makers in the financial sector itself compelled to take their traditional revenue models under the microscope and revise as necessary. Great transformations are reflected in the internal organization.
To find out what the decision makers are the most important in this dynamic field of play has Synechron in collaboration with research firm TABB Group, recently conducted a survey among 200 senior decision makers in the United States and Europe.
The survey shows that (meet) legislation is the main priority of bank managers in 2017. As many as 38% of respondents agreed that this issue will receive the most focus. The new laws and regulations that make their appearance get MiFID II and Dodd-Frank most priority, with 43% and 30% of respondents cite these laws as a priority.
Also, Basel III and FRTB be high on the list. Furthermore, future legislation relating to technological innovations such as block chain and artificial intelligence (AI) considered important (29%).
The most mentioned priority for the New Year is uncertainty. Not only economic but also political uncertainty is considered important, fed by events such as the Brexit, the outcome of the US election, the possibility Frexit and the elections. Such global political events always seem more to have a domino effect on the confidence in the world economy.
The rest of the top five trends consist of Data Management, Chief Data Officer (CDO) and System Integration. The coming months will include drivers improve their systems for managing liquidity risk, credit risk management, counterparty risk and collateral management.
When it comes to solutions; to be considered as well as smart near-shoring and off-shoring. Agile and efficiency are central to the implementation of the solutions.
Seven of the top 10 trends on the management agenda for 2017 related to the financial sector with technology. In fifth place are Chatbots, a form of automated customer service that can replace human workers to support clients in making important financial decisions, applying for mortgages, personal loans and the processing of insurance.
The sixth place is for artificial intelligence and the use of hybrid robot advisory services. These technologies make it possible to better serve wealthy clients automatically and millennial, or to improve the cyber security of the organization.
APIs and the cloud:
On the eighth and tenth place in the priority lists are respectively APIs and the cloud, and more block chain. More and more financial institutions and service providers move their data and IT infrastructure to the cloud to operate faster and more agile.
In addition, more and more open API programs used to launch app marketplaces. Meanwhile, technological developments in the field of block chain continue.
Accenture research shows block chain technology offers great opportunities to the banking sector, while Synechron itself here already responding with its special block chain testing program.
Synechron expects new consortia will arise to develop block chain applications and that some consortia will fall apart again. Banks will according to researchers continue to seek together to develop and launch pilot projects, with the biggest challenge the scarcity of talent with block chain expertise.
According to Faisal Husain, CEO of Synechron, it is no surprise that there is a lot of attention in the financial sector to technology, given the large impact of the digital environment on the sector.
“Cost reduction and outdated IT systems are part of nearly every customer call, so it’s no surprise that these cases be a top priority. 2017 is a year in which technology should lead to concrete added value, “says Husain.
The emergence of FinTech companies is one of the other focus areas reflected in the study. In recent years the market for innovative financial technology has grown in size.
KPMG research shows that investment in FinTech startups have increased from $ 2.4 billion in 2011 to a whopping $ 19.1 billion in 2015.
Meanwhile, the investment is weakened again in startups worldwide, as investors have become more critical of the opportunities a good return from investing in the seed stage.
According to Synechron will decline to continue in 2017 and one can perhaps this year the first “fall” of the FinTech-unicorns – startups that have reached a value of more than $ 1 billion in a short time – to expect? According to the agency’s only 1 in 10 investment proved worthwhile and financially sound.
Lastly is design thinking on the priority list for 2017 can be found on the ninth place. Many financial services providers have embraced mobile first and omni-channel strategies. Through design thinking, they can improve their customer service, from end to end the analysis of user data and research among end-users.