However, with the emergence of the COVID-19 pandemic, many organisations have struggled to meet the spike in user demand for convenient, responsive customer support, and faced problems successfully integrating a range of platforms that enable customers to conduct business digitally.
Recent studies around digital banking show roughly 38% of the UK population will have a digital bank account set up by the end of this year, and that around one in three UK adults consider the quality of customer experience in digital platforms as the number one driver behind changing banks. This highlights the need for financial institutions to stay ahead of the curve with digital innovations and infrastructures to maintain their customer base and reputation.
For financial institutions, adopting modern cloud technologies can underpin the development and deployment of critical digital technologies, helping businesses keep pace and become more user-friendly.
Modernising through high-level technologies
In recognising the benefits of what digitisation brings to the table for financial institutions, the imperative for cloud-based infrastructure becomes clear. The adoption of cloud models ensures insurance and financial services organisations are well equipped to rollout modern digital technologies, make better use of data and improve customer experiences.
The payoff for modernising at a customer level is vast; increased customer support, engagement and loyalty. On top of this, a well-implemented digitisation initiative can improve engagement with employees and increase shareholder value.
The broad adoption of cloud-based infrastructure can pave the way towards advanced technologies and processes such as artificial intelligence, machine learning, blockchain, data analysis and advanced cybersecurity tools.
Streamlining platforms and applications
The 2021 World FinTech Report from Capgemini and Efma suggests 48% of Gen-Y customers will consider switching banks if their current provider’s range of digital products and services do not integrate well with their preferred platforms.
It’s vital then that financial institutions prioritise multi-channel, user-friendly services and applications that are interactive, personalised and efficient. In doing so, businesses can expect to retain existing customers, as well as attract new ones.
One of the key considerations here is mobile banking, and how customers now want to be able to access and manage their financial data through their smartphones. A recent survey found user activity on mobile applications within the financial industry has grown by 354%.
Prioritising security and mitigating risk
Over the past 12 months, 62% of businesses within the financial services market reported that they had experienced a cyberattack of some kind. In the insurance industry, it’s a similar story, with 59% of executives reporting significant cyberattacks or attempts happening on a weekly or even daily basis.
Whether it’s the result of cybercrime, performance degradation or a naturally occurring disaster, organisations must implement advanced security solutions, and shore up both their backup capabilities and disaster recovery processes.
Whilst defences and precautions such as these have always been important, the growing number of cyberattacks and the added pressure on applications and services from the COVID-19 pandemic have only heightened their relevancy.
Customers expect readily available platforms and support, 24 hours a day, 7 days a week, 365 days a year – anything less and institutions risk losing them to the competition.