We are facing turbulent times with loads of economic and social changes thanks to the biggest pandemic in modern history. The global financial sector is rapidly moving, adapting itself to the new order. The use of new technologies to maintain and reinforce relationships with clients in a world where human contact is being reduced is key to ensure survival in the industry.
1. Digitalization
The pandemic has accelerated the digital transformation of the financial sector from a moderate need to an urgent reality. As a result, all digital and online processes have evolved with tools that help with direct, simple and efficient communication. Today we have a very different situation than the one we had two decades ago, so it is necessary to readapt companies to this new reality and take advantage of new technologies that allow us to continue doing business. The financial industry has invested a lot in digitalization in the past few years, using new software and tools that have helped generate more efficient, transparent and useful communication between businesses and their customers. Something that has been essential to this is customer’s past resistance to new technologies has now gone, which has enabled more user-friendly tech being created.
2. Growing competition
As a result of this sudden and rapid change in global commerce, big firms are “putting all their meat on the grill” to keep their status in the market. New technologies are helping small businesses grow too, and larger ones are investing in new solutions with the objective of delivering a unique brand value while also making them more competitive. Services are becoming more customizable for final clients and adapting to new ways of communication is key. From TechRules we have witnessed how hard and stressful the pandemic has been for big companies and have worked to overcome the barriers that have been imposed during the global lockdowns.
3. Risk efficient management
In the past, securing investment and avoiding risk was something of utmost importance for advisors, and this is certainly the case now more than ever. In times of uncertainty, it is essential to move money in the most secure and professional way possible. The demand for new algorithms that can predict market fluctuations has made companies like ours, to continue developing new APIs that can help both advisors and customers manage their wealth while making the best decisions possible.
4. Normative compliance
The collection of customer data has become key to offering more personalized solutions while at the same time helping generate new quality leads. However, data protection laws are becoming stricter and companies must perfectly control the way in which they move and share their customers’ data. Systems that capture and integrate all customer information in one place are more efficient than those systems in which data is repeated, redundant and causes confusion. Customer data is the most precious asset for investors and entities, so the challenge here is to improve those technologies which help manage and monitor customer assets.
5. Increasing brand value and optimizing user experience
While an increase in market rates is to be expected, companies will have to justify this increase by improving both their brand image and user experience. Identifying with the values of the firm is increasingly becoming more important for the client, so this is something companies need to focus on in order to attract new clients. In this new world economic scenario, a focus towards sustainability and the humanization of companies are the key things to stand out at a time when competitiveness is increasingly high.
See original blog: https://www.techrules.com/5-post-covid-keys-to-the-future-of-the-financial-sector/
About TechRules
TechRules is a leading consultancy and wealth management software provider for financial entities, focused on the digital transformation in financial services. For more than 20 years TechRules has developed cutting-edge modular and scalable solutions for the whole financial sector: retail and personal banking, private wealth managers, fund managers, IFAs and family offices. TechRules’s flagship solution is Tower: a global comprehensive platform built up with APIs to respond to any final customer demand and to any management process.
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