Five trends of financial institutions in 2021

2022-10-16
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Embracing new technologies, five major trends of financial institutions in 2021

in the past year, the COVID-19 has had a far-reaching impact on all industries, including the financial industry. Under the influence of the epidemic, significant changes have taken place in consumer behavior, from offline to online. Telecommuting is booming. Even after entering the new normal, telecommuting will become one of the choices of many employees

A Deloitte report pointed out that the future financial service industry needs to pay more attention to agility and efficiency, flatten the structure, speed up decision-making, provide more support for employees and create a flexible working environment. Everything will change, whether it's talent retention, data privacy, social equity, or the experience of customers and employees. Financial institutions need to think about how to deal with these changes, including business operations, processes, new technologies and new regulations. The digital transformation process catalyzed by the epidemic is just like the wheel of history. A Korean raw material manufacturer has just ordered a complex hp-rtm metering equipment from cannon afros, and it is unstoppable

in view of the changes and impacts that data analysis, AI and machine learning technology will bring to the financial industry, the following is C4. The effective force measurement range: 0.1/100 ⑴ 00%; Five trend forecasts made by louderA

trend 1: apply emerging technologies to risk management

a major change that the financial service industry must accept is that the traditional risk management models, especially credit risk models, may become obsolete or even obsolete, and artificial intelligence and machine learning will become the core of risk modeling in the next few years. Financial institutions need to update and develop new artificial intelligence and machine learning models to explore the value of data in a wide range in real time, so as to provide in-depth insight into the changing business links

financial institutions can adopt various schemes to meet the challenges of risk management. In particular, the head of risk management needs to rethink his business line of defense, such as conducting stress tests on all business lines and using automated systems to run hundreds of dynamic stress tests. Financial institutions can consider building a flexible and scalable risk conversion platform to effectively cope with this changing era

financial institutions can significantly improve the efficiency and performance of risk management by using alternative data, real-time data, AI and machine learning technologies for risk management

trend 2: strive to create personalized and digital customer experience

during the epidemic, people's utilization of digital platforms reached an unprecedented high frequency, as did financial institutions. By adopting the digital strategy, many banks have found good opportunities to customize products and services for customers. At present, many banks are using advanced data analysis and AI technology to provide customers with a more personalized experience

digitalization can not only help financial institutions promote their products, but also provide customers with an all-weather one click experience. Chat robots and voice assistants based on AI and machine learning technology can have on-site conversations with customers and strengthen the relationship between banks and customers. In order to improve competitiveness, banks need to adopt the strategy of giving priority to customer experience, the carrier of battery system and battery holder. By providing customers with personalized services to increase revenue, and with the help of a large number of data analysis to understand more business opportunities, so as to improve the breadth and depth of personalized services

trend 3: use data and machine learning to combat fraud

financial institutions can effectively prevent fraud through real-time data analysis and machine learning technology. During the epidemic, many frauds occurred worldwide. Taking advantage of the public's desire for health and safety, criminals set up many scams, such as vaccines, for crazy fraud. According to the covid-19 survey report released by the US fraud Review Commission in September 2020, 68% of the respondents said that the number of money fraud increased during the epidemic, and 85% of the respondents expected that the related fraud would continue to rise in the next year

with the increasing use of digital platforms and the emergence of new payment modes, new financial crimes also appear. AI technology can help financial institutions improve the efficiency and effectiveness of their criminal behavior screening. After screening the most suspicious criminal acts, financial institutions will use manual key examination, so as to greatly improve the efficiency of preventing fraud

trend 4: cloud can reduce costs and increase efficiency

the cloud environment can support financial institutions to achieve advanced analysis and automation quickly and cheaply. It is expected that the speed of cloud launch of financial institutions will increase significantly in 2021. Previously, financial institutions resisted the adoption of cloud architecture because they were worried about security and compliance issues, but now the improvement of security has effectively reduced the above risks. For example, the shared data experience (SDX) provided by cloudera can achieve consistent security management in various environments. Whether cloud is used as a sandbox for testing or modeling, or as a production environment, considering the speed and scalability of cloud, cloud environment has proved to be one of the important tools of financial institutions

for leaders of financial institutions, it is very important to think about how to use cloud computing for business innovation and efficiency improvement. Of course, not all workloads are suitable for the cloud. In the environment where local environment and private cloud will continue to occupy a place, the significance of multi cloud or hybrid cloud environment is to provide flexibility and security that match the environment of customers

trend 5: data privacy and compliance

the adoption of new digital technology means that a large amount of data is transmitted and accessed through the cloud. With the continuous expansion of data and analysis technology, the regulatory requirements around customer privacy and rights are also constantly improving. Data privacy protection has become the focus of attention worldwide. At present, various laws and regulations on data privacy protection are being introduced, such as gdpr. However, each new regulation not only enhances the protection of data privacy, but also increases the complexity of data application

financial institutions need to easily identify and manage sensitive data to meet compliance requirements. Only by using unified platform operation can we effectively achieve the above goals. The platform needs to include data classification, data inheritance, modeling, auditing and other functions

the entire financial industry is moving rapidly towards a digital future, and there will be many opportunities to improve efficiency, promote innovation and achieve growth in the future. Now, financial institutions should adopt more new technologies and use data analysis to gain insight, so as to improve customer experience and operational efficiency, reduce risks and prevent financial fraud

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