Common Technical Challenges and Needs for Finance Companies

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Your finance team has an important role to play in leveraging data to analyze different aspects of your business, like products, inventories, and customers. The advent of big data, machine learning, cloud computing, and advanced mobile technology plays a pivotal role in the way finance professionals operate today.

However, if your finance team is not keeping up with the ever-evolving tech scene, it can pose a major problem for your business in terms of revenue and output. Here are some common technical challenges that the financial services sector often encounters.

Clunky or outdated legacy technology

Is your legacy technology slowing you down? Is your team investing more time in “dealing” with systems provided instead of actually performing tasks? If you answered yes to these questions, then it's time for an upgrade. Improved processing power in hardware systems and up-to-date software versions can help perform tasks more efficiently and quickly.

Huge amounts of manual documentation

Smart software solutions can easily take away or even reduce the time invested in manually documenting the details of financial records. What does your team do if you have financial records to be maintained in the system for 200+ clients? If the answer is manually entering every detail, then your firm is investing its time in the wrong tasks.

Lack of websites or apps for connecting with customers

Does your business use the same old way of connecting to customers via phone lines? It can get frustrating for customers to be kept on hold until a human agent is available to attend to their query or complaint. A website or an app is available 24/7 for the customer to use at their own time. Plus, smart chatbots added to the website or app can be the first point of contact for your clients to raise a request, answer a query, make a purchase, give feedback, and more!

Insufficient predictive analytics for financial markets

Financial professionals no longer have to "crunch numbers" to come up with sufficient market analysis. Artificial intelligence can do that for you! Often, labor-intensive manual analysis can turn out to have errors – meaning that your company invested its time and capital in a fruitless task. If this sounds familiar to you, it's time to move on to an automated solution.

Vendor lock-in to proprietary platforms

With on-premise server maintenance and cloud platforms like AWS, Google, and Microsoft, if a vendor’s quality of service declines or they change their product offerings in such a way that it no longer meets your business needs, your business may be “locked-in”. A good alternative to proprietary tools is storing all your data in open-source formats on the cloud or opting for an enterprise AI platform that enables a seamless cloud integration with preferred cloud hosting providers.

Tech Needs by Financial Sub-Sector

Every sub-sector within the financial domain has a different set of objectives to address. The way technology is used across these sectors varies, and so do the associated challenges.

Commercial banking

In this sub-sector, the main challenges include using the right technology to improve operating efficiency while maintaining transparent processes. Technology can help to simplify and elevate the client experience while reducing risks.

Investment banking

This sector relies on tech to provide high-level automation via robotic process automation (RPA), machine learning (ML), artificial intelligence (AI), and data analytics. The greatest area of need here is streamlining existing processes and eliminating those processes that are redundant or low-impact.

Financial advisors

The greatest technological are of need for financial advisors is using technology to build long-term client relationships. Technology can provide personalized and relevant customer experiences by helping customers monitor their investments and financial portfolios in real-time. Easy-to-use apps and platforms need to be developed to provide a holistic customer experience.

Wealth management

Technology can help with rapidly changing business models and reduce the infrastructure complexity of present models. There is also a necessity for a seamless omni-channel experience to improve the flexibility and resilience of wealth management systems.

Venture capital

Technology can help VCs drive faster product development while introducing innovation within their market. The challenge here is to provide automated analysis to judge the feasibility and profitability of new products and business models. Technology has to be used in the right way for tracking profits, internal processes, and KPIs.

Insurance

Artificial intelligence, machine learning, predictive analytics, and live chat can streamline operations and customer interactions while providing a seamless customer experience.

Accounting

High-level automation can help accountants reduce repetitive tasks and focus on productivity instead. Digitization of audit processes can increase security, chatbots can be used to efficiently solve customer queries, and AI-powered machines can alert humans when a possible breach has occurred.

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