Technology rules every iota of our lives in this digital world, from online shopping to money transfers. Conclusively, that also holds for financial services. How are these institutions supposed to cope with countless transactions and storing sensitive data while keeping sophisticated cyber-attacks such as ransomware at bay?
Digital transformation is no longer an option but a necessity. It guarantees efficiency, seamless operations, and staying ahead of the competition. Equipped with the right strategies, financial services will survive now and secure their future success.
This article gives a detailed list of the best 5 key solutions driving this transformation to achieve quality engineering.
1. Using Distributed Cloud
Distributed cloud computing is vital in maximizing performance and increasing computing speed. This is achieved through the model’s distribution of different application services across different networked computers and the allowance for communication between them. Customers thereby access financial services on their Private Cloud or even in public cloud data centers owned by the cloud provider or other companies. Another option is opting for financial services solutions for the cloud from an authoritative service provider.
In distributed cloud storage, the storage is controlled centrally, allowing customers to control all operations, updates, and security from one place. Thus, customers will manage everything from one place, solving the problem of different clouds that can be hard to manage.
Edge computing is also essential in processing data near the source rather than at a central place. This makes data analysis easier. However, data from edge computing may be challenging to manage. The integration of distributed cloud and edge computing speeds up data processing while smoothly managing it from a central place.
2. Incorporating Blockchain
Blockchain technology, therefore, enables financial services to reduce transaction costs, eliminate most intermediaries involved, and provide advanced security. This is so because it acts like a decentralized ledger, maintaining a record of every single transaction.
Applying blockchain ensures maximum protection since it handles and records transactions using cryptographic algorithms. It also comes with a smart contract that self-executes contracts when the regulations are met. Thus, an insurance company can use smart contracts to fasten the claim process since blockchain programs will review them promptly through the codes.
In the case of money transfers, blockchain assists in the transfer of funds from one place to another with no central management. This confirms that it guarantees quick money transfers that may take seconds instead of four days.
Alternatively, you can create a new digital currency like Bitcoin via blockchain to make money transfers efficiently.
3. Enhancing Cyber Security
Since financial services involve vast amounts of money and sensitive information, they have always been a direct target for cyberattacks. Threats like phishing, whereby customers could be tricked into giving out their personal information, including inside attacks, are common.
However, measures such as online fraud and protection from antifraud allow early detection and prevention. As a result, spotting such attacks in real-time, dealing with them, and preventing massive losses.
Another option organizations can use to test their vulnerabilities is penetration testing and active data monitoring. They will be able to detect any weaknesses that may present themselves. Once the issues are identified earlier, they will quickly be addressed before they compromise the company’s data privacy.
Setting up Web Application Firewalls protects against web-based attacks like SQL injection. It forms a wall between your internal system and your web application. Thus, you can inspect and filter data as it moves from one website to another.
Thirdly, conducting DDoS protection will allow the business to route strange spikes in business activities elsewhere, enabling the company to continue unhindered.
Cyber security prevents financial losses, builds consumer trust, and offers compliance requirements.
4. Employing Customer Relationship Management (CRM)
Individual customer service is provided, ensuring you understand customers well and the processes go smoothly. For example, rather than customers repeating their problems to third-party respondents, CRM records all their services and is linked to a customer representative who will respond when they call.
It uses tools similar to knowledge bases or chatbots, which have information customers can access at will to find answers they need. CRM makes the job easier when looking for new customers; it sends automated emails of relevant products to old customers.
A business can also benefit from CRM because it automatically updates customer data and can easily merge with its customers’ social media and email accounts. It may also help brand landing pages and other pages appear professional.
5. Integrating AI and RPA
On the contrary, AI depends on computer systems and enables a computer to do tasks like deep learning or even generative AI. This combination optimizes complex tasks, such as handling customer problems and even self-service analytics. Automatic handling of data maximizes accuracy as the RPA relieves inconsistencies and mistakes.
Customer data is abundant in financial services, and structuring it manually by keying in data is arduous. Integrating AI and RPA removes redundancy while improving task execution. AI enhances structured RPA tasks, and companies gain analytics and insights without using complicated technical skills.
Conclusion
The banking industry has arguably been the most impacted sector by digital banking. Individuals get specific treatments, business information is protected, and incidences seem less steep. Digital transformations have reduced time wastage in what may be a form of important entry that can occasionally be tiresome and the tendency to pull other cumbersome analytical tools.
It is about time to bet on tomorrow and adopt CRM, blockchain, AI&RPA, decentralized clouds, and enhanced cyber security to reduce costs and make every activity more effective. Still, all these long-term constructive alterations benefit you, boost customers’ confidence, and set your enterprise apart.
