Biggest Mistakes Financial Services Technology Leaders Can Avoid

June 26, 2017 | Post by Tim Fisher | 0 Comments

2017 CompuCom Insights Series

Mistakes in Financial Services

Pain Points Keeping Financial Services IT Leaders Up at Night 

IT leaders are feeling pressures from multiple angles, namely keeping pace with major technology trends (internet of things (IoT), big data analytics, cybersecurity, cloud computing and digitization), preparing for the future and responding to consumer demands for more engaging experiences. At the same time, a focus on cost continues, driven by a need to streamline operating costs throughout organizations and compete with fin-techs and other digital disruptors. 

Our 2017 survey highlighted that as IT leaders look across the IT stack, they suffer from six major pain points: 

  1. Adapting to constantly changing and more sophisticated cyberattacks: There has been a 458 percent increase in the number of times hackers searched IoT connections for vulnerabilities. As the number of attacks increases and the types of attacks become more sophisticated, IT organizations are pressured to implement more advanced cybersecurity protection to mitigate the risks of losing sensitive and confidential information. Cyberattacks have increased from 704 reported attacks in 2008 to 1453 in 2016; this value is likely understated as most attacks go undetected or unreported. The per capita cost of breach has also increased nine percent per annum over the past 11 years. Despite increasing budgets, IT executives may not know where to invest and how to protect from increasingly sophisticated attacks. 
  2. Bring Your Own Device (BYOD) expectations create security and compliance headaches: Organizations are looking to be flexible with their employees in allowing them to bring their personal devices to work, integrating personal communications, applications and connectivity with work. This creates a headache for IT leaders from supporting new devices and software and ensuring adequate security and compliance from BYOD. 
  3. New digital tools are straining legacy systems, requiring integration or replacement: Legacy IT systems must either be integrated with new software or completely replaced. This causes complications for IT officers as integrating and updating is both expensive and can cause a loss of functionality if not done correctly or efficiently. IT leaders must ensure that the solutions are scalable, reliable and secure.
  4. Need for ways to support more stringent compliance: Regulations have skyrocketed from 1998 to 2015 rising from 22 regulations to over 22,000. Regulations have gradually built-up over the past years, creating complexities in compliance and documentation processes. CIOs are being called upon to enforce compliance through the distribution of the latest software patches and security standards on all employee devices. Ensuring uniformity and timely delivery of this functionality is a key challenge. 
  5. Omnichannel expectations are creating complexity in connecting each channel to present real-time information: Omnichannel is of upmost importance to financial services IT leaders — consumers demand quick and reliable service on every device at any given moment. There is great complexity in connecting each channel to represent the most up-to-date information in real time. Omnichannel capabilities require not only technology capabilities such as showing the same look and feel on every device, but also requires IT to integrate back-end systems and cybersecurity in order to present personalized information across platforms, advanced analytics and more.
  6. Exponential growth in data is burdening infrastructure: More data due to more transactions, consumer data driving exponential increase in data, as well as the proliferation of sensors in insurance and banking companies drives the need for infrastructure that can both collect massive quantities of data and keep consumer information safe. Therefore, to remain competitive, financial services providers must invest in the additional infrastructure and software required as well as intertwine additional network capabilities to capture necessary business value.

The Benefits of Selecting an IT Services Partner

Partnering with an outsourcing services provider can help you design the best solution to address your pain points, and help you circumnavigate pain points before they happen. Outsourcers can be used to safeguard consumer’s most sensitive financial data at a lower cost, enabled by access to and experience with more advanced cybersecurity protection and tighter compliance management techniques. Outsourcing partners are often used to ensure the latest employee applications are securely loaded with software to protect enterprise mobility in the face of BYOD growth. They eliminate the stress of maintaining and integrating legacy IT systems by using management tools to ensure the latest applications are always deployed to your end-user devices and ensure the right parts of your infrastructure are moved to an off-premise cloud. 

Conclusion 

While new technology developments hold the promise of delivering significant value, they also bring with them additional pains. Challenges face IT leaders, and they must be navigated correctly in order to prevent damaging organizational blunders. 

Key Takeaways

  • Digital pressures are causing many headaches for IT leaders both financially and strategically. 
  • Organizations have chosen to outsource their largest pain points to alleviate the stress at little to no disruption of daily business activities. 

Our insights are based on our 2017 CIO survey, where we interviewed top CIOs and technology executives from the Fortune 500 in 12 market segments — spanning retail to financial services — as well as our deep expertise in deploying solutions for clients over the past 30 years.

The content and opinions posted on this blog and any corresponding comments are the personal opinions of the original authors, not those of CompuCom.

  • Tim Fisher's picture

    Tim Fisher

    Tim Fisher is responsible for CompuCom’s Banking, Financial Services and Insurance vertical strategy & business development activities.  Tim joined CompuCom in 2007 and has over 25 years of information technology experience serving the financial services industry. 
     
    Prior to joining CompuCom Tim held various sales and sales leadership roles with CSC and IBM. Tim began his career in the insurance industry holding positions in marketing, product development, and pension sales.  Tim is a graduate of the University of Wisconsin Eau Claire.

     

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