Do you have your finger on the pulse of 2020? You need to anticipate the trends that will dictate the state of the banking sector so that you can overcome the associated challenges.
The banking sector, just like every other industry, is affected by our ever-changing world. The increase in technological advances has been swift and irreversible. Although technology is meant to make work easier for everyone, it requires your full attention to keep up.
Most of today’s banks have embraced the changes that are occurring in our technology-driven world. And still, some have been unable to keep up, and are encountering serious challenges.
Top 3 Issues That Bankers Need To Be Aware Of
- Interest Rates: At its core, the industry as a whole operates on the fundamental rule of economics: supply and demand. Three cuts by the Federal Reserve last year make it difficult to rely on interest rates, which will have a major impact on the sector this year – available resources need to be even more strategically allocated, without being able to depend on the same interest rates as in previous years.
- Open Banking: According to the Open Banking Report of 2019, 87% of countries have some form of API or Open Banking process in place right now, and that’s only expected to grow. The potential of APIs to allow clients to customize their experience and access more services at low cost to banks is transforming the industry as a whole. However, more APIs and Open Banking requires more technical capability on the bank’s part.
- Harnessing Innovative Technology
Perhaps the most important challenge that banking institutions face is the constant need to update their technology. You want to have the latest and greatest software programs and network services, but all this can be expensive. To make matters worse, technology is constantly evolving. For many banks, the best way to alleviate this concern is to find an IT company and allow them to handle the technical aspects of your banking institution’s operations. The right IT company can equip you with exciting new technology and applications, such as process automation.
As you can see, two of the top three priorities for banks this year concern the direct application of new technologies to gain benefits in productivity, security, and client retention. If your IT company can’t or won’t help you attain the benefits of true digital transformation, then you need to find a company that will – a company like RedRock Information Security.
The one thing to look for in IT services for banking institutions is a team that understands the banking industry and the technology involved in it – that’s what RedRock can do for you. From IT assessment to implementation and comprehensive management, we provide the resources to help you overcome the industry-wide challenges that so many institutions like yours are facing.