The Trends Shaping Technology in Financial Services in 2020
July 6, 2020
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The pace of technological change in recent years is, without doubt, the most disruptive force in the financial services ecosystem today – a change that looks set only to continue and accelerate. As a result, financial services firms globally are increasing investment in new and innovative digital capabilities. They are embracing the very digitalisation that has disrupted their industry, to support an array of functions from regulatory compliance to customer experience and product development.
David Clee, CEO and Founder of MirrorWeb, here explores the key technology trends set to shape financial services in 2020. This includes increasingly intelligent use of customer data, adoption of digitalisation by regulators and greater uptake of technologies to address ever-evolving compliance obligations.
More intelligent use of customer data through tech
In today’s digital world, we provide more information about ourselves, our behaviours, preferences and needs than ever before. Spectators argue that data has overtaken oil as the world’s most valuable resource. Indeed, data collection and analysis has emerged as a major enabler for financial services. As the capability of technology expands, we can expect to see more businesses in the sector capitalise on the opportunity to learn more about their customers and improve their offerings.
Recent regulatory changes have helped to drive this for smaller entities. One example includes the second Payment Services Directive (PSD2). Otherwise known as ‘Open Banking’, which came into force in 2018. By forcing the biggest banks to release and share customer data, PSD2 has helped fintechs and other innovative new entrants, such as budgeting apps and robo-advisers, to tailor what they offer customers in terms of products.