Why your Banking and Finance Business Needs to Transform Digitally

Why Your Banking and
Finance Business Needs of
Transform Digitally
30 Apr 2020
www.gatewaydigital.co.uk

As Charles Darwin’s famous quote goes, “It is not the strongest species that survive, nor the
most intelligent, but the ones most responsive to change.” To stay relevant in this disruptive
era, businesses need to adapt to change. The main driver of this change is the rising
customer expectations and the pace at which they are embracing digital.
Emerging technologies and digital methods have transformed our lives. From the way we
shop to the way we manage our health and work – every part of our lives has (or soon will
be) digitised. Be it small scale businesses or large organizations, everyone is adopting new
methods and technologies to improve the way they do business.
When it comes to banking, the customers of this digital era have many options. Digital
transformation in banking has given rise to hundreds of startups working on various
alternatives to traditional banking. Also, FinTechs that focus on enhancing customer
experiences are disrupting traditional banking and finance industry like never before. It is,
therefore, time for legacy brick and mortar banks to become digitally savvy.
Challenges Facing Banks and Finance Industry
Here are some common challenges faced by legacy banking and financial institutions in the
current era:
Threat from FinTechs
For a long time, banks have relied on their financial services and monopoly without having
the need to invest heavily in innovation and new technologies. But this has changed in
recent times, with the emergence of FinTechs. According to Jamie Dimon, President and CEO
of JPMorgan Chase, “Silicon Valley is coming, and if banks don’t up their game, then tech
companies will take over the industry’s business.” This is true, as FinTechs now pose a threat
to established, traditional banks.
This challenge can be converted into an opportunity with successful bank-FinTech
collaborations. The agility and new use cases of FinTech firms can be combined with the

industry expertise and ready-made infrastructure of traditional banks to drive better
business.
Security concerns
Digitization brings with it the risk of fraudsters and data breaches. And, with the emergence
of mobile payments and omnichannel access, security risks are at an all-time high.
Customers look for banks and financial institutions with perfect security systems. Hence,
having flawless security measures is of utmost importance for businesses ready to take on
digital methods. To achieve this, financial institutions need to develop and deploy inviolable
security systems with the help of market leaders and technology partnerships.
Meeting new age customer demands
When it comes to handling their finances, customers have varied preferences. Some want to
meet their banking personnel in person, while some prefer handling everything virtually and
on their phones. Consumers expect their banks to interact with them like top technology
brands. Bank of America claims to have improved customer satisfaction by investing in digital
banking capabilities. While having sturdy processes in their brick-and-mortar locations are
important, banks must also modernize and create digital workplaces and strategies for
better customer acquisition and satisfaction. Hence, an omnichannel strategy is a must have
for BFSI players to cater to all their customers.
Need to upgrade systems
Traditional banks function with the help of legacy systems and software, which no longer
serve the purpose of catering to digital customers. Replacing or upgrading these systems
requires a proper strategy and implementation of the right technologies and tools. Most
banks lack the expertise and exposure to implement emerging technologies and systems. To
solve this challenge, financial institutions need to hire a technology partner that can help
them deploy the right systems needed to meet their goals.
Embrace Digital to Transform into a Modern Financial Business
The financial industry is transforming into an ecosystem that uses innovative technologies
and data to improve customer experiences and remove inefficiencies. Banking organizations
need to embrace this change swiftly by incorporating future technologies such as AI,
Blockchain, Big Data, IoT, etc. while keeping the security balanced. While this is not possible
overnight, businesses need to start by being open to innovation, and partnering with
FinTechs and technology providers.
Gateway Digital is a digital transformation service provider catering to businesses in the
banking, finance, insurance, and FinTech sectors with end-to-end innovative solutions. We
have worked with some of the leading players in the BFSI sector and helped them resolve
technical and functional business challenges.
Need help with building a digital ecosystem for your BFSI business? Find out more about our
services at www.gatewaydigital.co.uk or get in touch with us at hello@gatewaydigital.co.uk.

Enterprise Solutions for Digital Transformation
Gateway Digital UK
Landmark House, Station Road,
Hook, Hampshire, RG27 9HA
UK
Phone: +44 7966 861 543
E-mail: hello@gatewaydigital.co.uk
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