Jack Funchion, VP Sales, Global Financial Services
Rather than pulling back when the pandemic hit, many businesses—including financial institutions—accelerated their digital investments. According to a study conducted by BDO , a global financial advisory services firm, more than 6 in 10 financial services firms added new digital projects this year, and over half are revising their long-term strategic vision. Key areas of transformation include
- Pursuing enterprise agility (51%)
- Introducing new digital revenue streams (51%)
- Expanding a digital partner ecosystem (49%)
- Digitizing the supply chain (45%)
- Adding new payment models (44%)
- Expanding into new markets (43%)
A recent Gartner report highlights 83% of CEOs surveyed expect to increase investments in digital technologies, and 70% are betting on digital data products to grow .
Digital Transformation Creates Higher Risk
Just as these digital initiatives create new opportunities for financial institutions, they also present challenges that prompt rethinking their IT architecture.
The explosion of data and the acceleration of digital transformation has financial services firms trying to store and process record amounts of data. The lack of optimized data exchange presents opportunity targets for cyber criminals and nation-state actors. For example, a study by the Boston Consulting Group finds that financial services firms are 300 times more likely to be targeted by a cyber-attack than businesses in other industry segments.
Cybersecurity risks are a critical threat to any financial services industry (especially commercial banking), but legacy infrastructure barriers can also create fraud risks for those in the securities, trading and investment banking sector.