Technology has sparked rapid change in all industries, and the way business is done today looks very different from how it was five years ago. The financial services industry in particular, experienced significant technological developments in the last few years to improve client experience, financial inclusion and online security. iMasFinance is no stranger to digital transformation and has embarked on its own digital enablement journey to transform the way in which it engages with its clients. Jaybalan Goonahsylin iMasFinance Chief Information Officer shares insights into the latest digital developments in the financial sector:
1. What are the most significant developments that you have seen lately in the financial services industry?
The financial services industry has witnessed the following significant developments in recent years:
• Mobile payments, digital wallets, and blockchain-based services,
• Digital currencies,
• Expansion of open banking allowing secure data sharing resulting in the new financial products;
• Adoption of AI and ML improved risk assessment and customer service;
• Sustainability and ESG investing became more prominent;
• Neo banks gained popularity, offering user-friendly and innovative banking experiences,
2. Why is digital enablement so important, especially in the financial services industry?
Digital enablement in the financial services industry is vital for staying competitive, improving customer satisfaction, achieving operational efficiency, and unlocking new opportunities for growth and innovation.
It also allows financial institutions to offer convenient, user-friendly, and personalised services while automation and digitisation of processes streamline operations, reduce paperwork, and cut down manual errors. Digital technologies enable the collection and analysis of vast amounts of data so that financial institutions can gain valuable insights into customer preferences, behavior, and needs, which can inform the development of targeted products and services. Advanced security measures can be implemented through digital enablement, providing stronger protection against cyber threats and fraudulent activities.
3. What significant developments have iMasFinance embarked on recently, in terms of digital enablement?
At iMasFinance, business enablement and customer experience are at the centre of our digital strategy. The key objective is to remain competitive by leveraging digital technologies. We have developed a digital blueprint which is the roadmap guideline that directs our digital transformation journey. Since the start of this journey, approximately 35 digital related projects have been implemented, several included the modernization of existing systems to enhance our customer journeys. Several Cloud based solutions have been implemented and iMas has also launched its digital online portal, which is the primary engagement point for our customers.
4. What are the main risks that the financial services industry experience at the moment and how does iMasFinance mitigate against these risks?
The financial services industry faces a range of unique risks due to increased reliance on technology and digital platforms. These risks include cybersecurity threats, data privacy concerns, fraud, regulatory and compliance challenges, operational disruptions, third-party vulnerabilities, and the need to adopt emerging technologies. Mitigation strategies involve implementing robust security measures, conducting regular security audits, and providing employee training on cybersecurity. Financial institutions must also comply with data protection laws as well as adopt a proactive approach by investing in advanced fraud detection systems, stay informed about regulatory changes, and develop disaster recovery and business continuity plans.
5. Are there any other technologies in the financial services industry that consumers can look forward to?
The following emerging technologies will have a significant impact on the financial services industry:
• Artificial intelligence and machine learning;
• Blockchain and distributed ledger technology;
• Internet of Things;
• 5G technology;
• Quantum computing;
• RegTech;
• Biometric authentication;
• Robotic process automation;
• Augmented reality and virtual reality;
• Green finance technologies;
The adoption and influence of these technologies will depend on various factors, but they hold the potential to reshape finance and drive innovation.