The global financial services industry has struggled with technological innovation. In part, that’s because of the highly regulated nature of the business. But customer expectations are changing and competition from non-traditional players is rising. At the same time, regulators around the world have signaled more flexibility with innovation, creating a window for firms to apply emerging technology to address some longstanding frictions in the industry.
What we discovered is that the most significant disruption won’t necessarily be from any one technology, even one as broad as artificial intelligence . Instead, it will come from a combination of AI and cloud computing plus at least one other emerging technology — a phenomenon Deloitte calls the “multiplier effect.” Here are four business activities where the multiplier effect is likely to hit financial services.
Every so often, look at the data you’re capturing to identify blind spots, see where information is being underutilized, and evaluate whether the benefits outweigh the cost of collection. As you do so, consider cloud-based solutions so you can integrate new data sources in a modular fashion.Empower teams to look for improvement opportunities — for example, friction points along the customer journey — that emerging technologies might address.
The multiplier effect offers financial services executives a chance to offer new value propositions, create new cross-sector opportunities, and unlock new capabilities. But it’s time to take action now, before disruptors seize the advantage. By investing in AI and cloud computing, then adding other emerging technologies as needed to solve key business problems, firms can liberate themselves of old assumptions and pursue innovation at a pace and sophistication that wasn’t always possible before.
Robert Contri is the Global Financial Services Leader for Deloitte. In this role, he is responsible for overseeing Deloitte’s four global financial services sector…Robert Contri is the Global Financial Services Leader for Deloitte. In this role, he is responsible for overseeing Deloitte’s four global financial services sector groups–banking and capital markets, insurance, investment management, and real estate. This group includes over 54,000 people in more than 40 countries.
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