Finance and technology – it’s like a match made in heaven. Businesses within the finance sector have always been some of the first to adopt new technologies, recognising the unique value that innovative tech solutions can hold, and the way that they can help companies to grow. But over the years, the relationship between technology and finance has been symbiotic – while new technologies bolster the finance industry, finance based IT solutions are often on the cutting edge of the latest enhancements and advances in tech.
In this article, I wanted to take a look at the role of technology in the financial industry, and, in particular, why managed IT services are the right fit for finance businesses.
What Are The Benefits To Using New Technologies In Financial Services
Adopting new technologies always comes with a certain amount of risk attached to it. But as financial service providers have discovered, there are also plenty of benefits to be felt when those risks are managed and mitigated, and when the right technologies are adopted in the right ways. Here are just some benefits that the role of IT in the finance sector has highlighted:
1. Increased Efficiency
Time is money, and that is never more true than in the finance industry. Every minute that you spend on a task that can be automated is a minute wasted. Which is why technologies that enhance efficiency, automating tasks that don’t need a human touch, can save both time and money for businesses in the finance sector.
2. Improved Accuracy
Human error is the cause of unending problems. In fact, according to a recent study by IBM, 95% of data breaches are the result of human error. And in the finance industry, the phrase ‘data breach’ is practically a swearword. Because financial service providers deal with sensitive data on a daily basis, protecting that information is critical, and any risk of human error is a risk to their reputation as well as their financial standing. The right technologies help businesses to limit the risk of human error by automating processes that can be automated, and providing better accuracy when it comes to the completion of tasks and the collection of data.
3. Enhanced Collaboration
No matter which industry you’re in, collaborating with your colleagues is essential. It can make the transition from one department to another as seamless as possible for your clients, improving your customer service. It can see projects being managed effectively and efficiently without any hiccups or delays. It can be the difference between success and failure for many financial businesses. Which is why having the right technology to help you work seamlessly together, whether you’re in the same office or in different countries, is an essential benefit for the financial sector to take advantage of.
4. Better Decision Making
With access to information comes great power. (Though with great power does come great responsibility, in the form of needing to protect your data and keep it compliant with all necessary regulations.) The more data that a business has available to it, the better informed their decision-making processes will be. And finance is one industry where information abounds. Having technology to pull that information together from various sources will see you making better decisions backed by data, rather than by gut instinct.
5. Improved Security
Because the finance sector is so reliant on data, being able to protect that information is critical. Technologies that enhance business security and keep data safe are always going to be some of the first that finance businesses implement. This sees them protecting themselves against ever more sophisticated and varied cyberthreats.
What Are Some Examples Of Technologies Used By Financial Service Providers
We’ve looked at the benefits that can be found in using innovative technologies, and the impact of IT in the finance industry, but what are some specific tech solutions that financial institutions are using, and what is the real impact that this tech has on businesses?
1. Machine Learning and AI
From analysing financial data to determine a prospective client’s risk assessment, to detecting unusual patterns that can indicate fraud, to analysing financial data to make more informed investment decisions, artificial intelligence and machine learning have a critical role to play for modern financial institutions.
2. Data Analytics
It’s not just machine learning that has furthered data analysis in the finance sector. Having access to huge amounts of information about your target audiences, their shifting demographics, their interests and hobbies, and seeing those statistics, insights and analytics in new and interesting ways can help financial providers to better adapt to change, work smarter rather than harder, and to help their clients make the right investments.
Here are just 15 ways that Microsoft analytics tools can help you work smarter.
3. Cloud Solutions
Financial institutions were some of the hardest hit by the pandemic and the lockdowns that governments around the world implemented. But because many finance businesses had already started investing in cloud services for their storage, and cloud apps for their operations, it made it significantly easier for them to shift their operations to accommodate remote workers and keep their operations running, even as other areas of their business became ever more difficult to manage.
4. Cyber Security Solutions
Over the past few years, we have seen cybercrime becoming more sophisticated, and a lot more difficult to track, recognise and avoid. IT security solutions are constantly being developed to protect businesses against cyberthreats, and cybersecurity services are some of the most beneficial to businesses in the finance sector, as financial institutions are often seen by attackers as a lucrative target.
5. Risk Management
Every business faces risk. Finance companies doubly so, since it’s not just your own risks and investments you need to manage, but those of your clients as well. But there are methods of avoiding and mitigating risk, and in many ways this is where the role of IT in the finance sector shines. Having the right IT partner by your side can help you to implement technologies that give you the data and the information visualisation that you need to manage your risk. They can help you to assess, manage and maintain your IT infrastructure, ensuring minimal risk from cybersecurity threats and from unforeseen expenses should a piece of equipment break down. And while you may be experts in the finance industry, you shouldn’t need to spend your hours concerning yourself with risks that you do not fully understand, which is again where a Managed IT Services Provider can come in. By transferring the risks related to your technologies onto partners with the right expertise, you can minimise the risk to your business, and focus your attentions on the areas that are your specialties.
6. Strategic Technology Planning
Knowing which technologies are right for your finance business is no easy task. There are so many new solutions coming into the market on a practically daily basis, all of which claim to be the solution to all your business woes. But not only can technologies come with a big price-tag, but companies both in and outside of the finance sector often struggle with adoption, meaning that you pay a lot of money for a solution that nobody ends up using. This is why strategic technology planning is a necessity, particularly for businesses in the finance industry. You want to ensure that you are making the most of technologies that you already have, and that you are planning ahead and looking to technologies that will help your business to grow without breaking your budget. There aren’t too many IT providers who focus on strategic planning, but when you find the right one, you’ll see the value straight away.
How Can Solid Systems Help?
The role of technology in the financial services is an important one. But more important is finding the right IT partner who is going to help you implement the right technologies, manage them, maintain them, and help you put them to the best possible use for your business.
At Solid Systems, we’ve spent more than two decades helping businesses to implement technologies that see them growing. We’ve developed our technology management services with finance businesses in mind, making us the perfect partner for accounting firms, investment management companies, banking institutions, fintech providers, and so many more companies within the industry.
But don’t take our word for it. Book a consult with us today, and find out exactly how Solid Systems can add value to your business, seeing you making more money and stepping into the future with confidence.