Financial services companies are highly information-driven and have tremendous opportunities to use information and insights to improve earnings. They are using advanced data analytics to meet regulatory and security requirements and improve customer satisfaction while driving down operating costs.
However Financial institutions are in a challenging situation. Legacy systems, processes, and relationships make innovation extremely difficult, even as new technology ramps up user expectations and attracts new competitors. Many firms still struggle with making a digital transformation, even as their future growth may depend on it. Using data and analytics, firms may predict client needs and find new paths to profit. With artificial intelligence and digital labour, they can unlock powerful insights and move staff to higher-value work. Analytics is changing the physics of financial services, weakening the bonds that have held together the component parts of incumbent financial institutions and opening the door to entirely new operating models. However financial institutions will have to innovate towards business models that are platform based, data intensive, and capital light.