eNewsletter Autumn 2017
The financial services industry faces a lot of changes in terms of regulation and compliance, customer retention, FinTech threats and profit margins. The increasing pressure from regulators along with the need to automate processes within the organisation are best met with the use of the right software that can make operations more agile, allow easy compliance to changing regulatory requirements and ultimately offer a competitive client experience that could lead to higher margins.
In terms of regulations, the financial services industry has been continuously affected by the changing regime in capital adequacy with Basel II/III, the processes, transparency and commissions in favour of the client with MiFID I/II as well as the continuous changes in alternative finance, marketplace lending and crowdfunding that now sets more parameters for start-ups and established firms.
When an organisation has rigid operations there might be a lack of flexibility in adapting to new regulations and market trends. This creates an opportunity in the marketplace for start-up firms to emerge and deliver a new set of services. This type of firms usually has the infrastructure to quickly deploy changes in their processes much faster than established firms, thus delivering differentiated and innovative services to clients more competitively.
This is a prime reason why the FinTech organisations developed their operations, ranging from the alternative finance platforms to robo-advisors, as the end result is faster customer service appealing to new age banking customers and investors. This makes existing financial institutions to re-visit their IT infrastructure and service offering to compete effectively, or as many do lately, to collaborate to gain technological know-how and thus expanding to new markets. With such “disruptors” in place, technology allows for greater flexibility. Profile Software is among the leading FinTech solution providers developing award-winning products.
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