The finance and banking sectors are plowing more resources into digital transformation. For example, banks and credit unions with an average size of $4.4 billion more than doubled their spending on digital transformation last year. But what technologies are organizations investing in? And why should financial companies hire individuals with experience in this new tech? Find out more in this post.
The finance and banking sectors are integrating fintech (financial technology) to streamline workflows, optimize consumer experiences, improve security, and carry out many other functions. Here are some popular technologies that drive digital transformation in these industries:
Digital banking lets customers access financial services online instead of visiting a financial institution’s brick-and-mortar location. For example, consumers can view account balances, pay bills and debts, and apply for financial products like credit cards on their mobile devices or computers, lessening the pressure on staff at physical locations. Seventy-eight percent of adults in the United States prefer to bank through a website or mobile app rather than access financial services in person.
More financial institutions have invested in blockchain recently, allowing customers to receive and send funds securely. Research shows that this tech can enhance trust, traceability, and transparency when sharing transactional data. Plus, experts predict that worldwide spending on blockchain will reach nearly $19 billion by the year 2024 — that’s up from $1.5 billion in 2018.
Blockchain is the tech that provides the foundation for cryptocurrencies like Bitcoin and Ethereum, which have become increasingly popular in the financial and banking sectors. Cryptocurrency transactions normally incur fewer fees and have quicker transfer times than conventional banking transactions. Financial companies investing in this tech can attract new customers and improve liquidity.
Data analytics lets financial companies analyze big data sets and discover patterns and trends in this information. By analyzing data, companies can find out more about customers, services, and operations and make smarter decisions that increase their bottom line.
Chatbots are AI-powered computer programs that simulate human conversations with customers. Financial companies use chatbots to provide 24/7 customer service, offer more consistent support, and enhance the customer experience. More organizations are investing in this technology to reduce workloads for human agents and save costs.
Banks and financial companies should hire staff with experience in the fintech listed above. Otherwise, they won’t be able to implement these technologies successfully. Here are some reasons why organizations require employees with digital transformation experience.
Digital transformation can help a company stay competitive — but only if staff know how to use technologies like cryptocurrencies and chatbots. Hiring software engineers, data scientists, data engineers, data governance officers, and other team members can help companies compete with their rivals and attract more customers.
Many financial technologies involve the processing of large data sets. Data analytics, for example, require financial organizations to move data from disparate software tools like customer relationship management (CRM) systems and transactional databases to a central depository like a data warehouse. Moving sensitive customer data to a new location might violate GDPR, CCPA, and other data governance legislation, so financial companies need to hire staff who have knowledge of data-sharing laws and frameworks.
Cyberattacks cost the banking industry $18.3 million a year per company. Hiring cybersecurity professionals like network security engineers and penetration testers can help financial institutions keep their valuable data safe and prevent a cybersecurity event like a DDoS attack from impacting business operations.
Hiring staff to successfully implement digital transformation technologies like blockchain, data analytics, and chatbots is a must. However, HR managers often experience challenges when finding the right talent, such as increased competition and skill shortages.
MRINetwork is a thought leader in the financial space and an expert in talent strategy and recruitment, helping you find the right employees to support your digital transformation efforts. Follow MRINetwork to learn more about transformation, hiring, and other topics.