As financial institutions pivot to digital, they require a business-process-centric assurance strategy that connects technology and regulatory compliance — while delivering desired operational benefits. Financial services firms need to address the many nuances of emerging technologies such as blockchain and advanced artificial intelligence (AI).
Digital has opened the door to new financial services products, customer touchpoints and improved operational efficiency. Yet, digital thinking and technology, such as advancements powered by blockchain’s distributed ledger, threaten the industry’s stronghold of all things financial.
Moreover, fintech entities such as Amazon Payments, with a near monopoly on customer data, exert more influence on market dynamics than most established banks. Digitally empowered customers have compelled firms to sanction loans within minutes. Goldman Sachs’ lending arm, Marcus, even allows customers to dictate loan terms. As regulators respond to digital advancements, firms have to comply with in-flight regulations.
As financial services firms embrace digital, they need business assurance strategies that extend conventional quality assurance methods to address the nuances of emerging technologies such as blockchain and advanced artificial intelligence (AI). Moreover, they need assurance that their strategies can accommodate changes in the ever-shifting regulatory landscape wrought by the acceleration of digital within the core of their businesses.
Last but not least, firms need to validate user journeys across the stakeholder ecosystem including bank employees, insurers, regulators and third-party agents, not limited to customers. This will ensure that they deliver a consistent user experience across touchpoints and technologically preempt gaffes that could potentially undermine their financial and/or reputational integrity.
Cognizant's latest white paper on banking and digital explores how financial firms can excel in digital by holistically addressing the quality of business processes built on disruptive technologies while assuring compliance to regulations. Download Banking on Digital: How Financial Firms Can Be Future Ready.