Data tools

Redefining financial services with modern data tools

When it comes to technological acceleration and innovation, in India, the financial services industry generally takes the digital charge. This is mainly due to the ever-changing needs of the industry which require major banks to adapt quickly to ongoing innovations. For example, the Reserve Bank of India (RBI) recently announced the creation of an internal fintech department, in order to focus more on innovation in the sector and to keep pace with the dynamic digital landscape.

There is rapid momentum in the adoption of technology within the industry and it is expected to continue growing in the future. For example, the adoption of business process management (BPM) is expected to increase from 44.7 lakh to 48.5 lakh by March 2022. Open banking is emerging to transform banking operations across the globe as 25 % of banks and credit unions plan to invest in or develop APIs this year. The adoption of these technologies will only reveal the urgent need for financial services to invest in their data strategy, as data will pave the way for understanding customers’ financial journey, buying habits, profiles and preferences of individual customers.

Here are some best practices that financial services organizations can use to meet changing customer demands and redefine customer experiences.

Move from isolated touchpoints to unified journeys

Changes in the digital marketplace are driving organizations in all industries to adopt the cloud. However, siled approaches in the hybrid and multi-cloud world can lead to greater complexity, slower innovation, and higher costs than traditional on-premises solutions. Unifying observability enables teams to understand the interdependencies of cloud services and components. While there can be a variety of technologies that provide the capabilities to deploy applications in the cloud, organizations need to understand and plan how to address the four key workflows: provisioning, security, networking, and observability. . To open the fastest path to value creation in the cloud, it is important that these organizations have a unified platform and automate observability across the entire cloud stack.

Enabling serverless cloud services with observability

Although the serverless cloud is a relatively new concept, it is expected to thrive with the current increase in cloud adoption. The majority of financial organizations are rethinking their strategies and accelerating changes to their technology stacks to better face the new future, primarily through the cloud. With the right observability tools, BFSI organizations will be able to have complete visibility into the performance of their complex cloud services, diagnose and resolve issues that affect customer experience, whether in application code, interface user or infrastructure performance.

Stay ahead of data residency laws

Data security has been the primary focus area for organizations, which has led to the emergence of data residency laws. These laws are set to govern organizations to process locally originated data and ensure privacy and protection of critical data. It mainly affects organizations that do business across borders. While companies in Australia, Germany and China are already governed by these laws, companies operating in India, Russia, Indonesia, Vietnam and Nigeria are also expected to be impacted soon. Banks and financial organizations in India should therefore be prepared with an action plan that provides end-to-end visibility across the entire enterprise, regardless of where the data resides. Data correlation between electronic banking, investment and insurance services, as well as backend payment and transaction processes should remain transparent even when the law comes into force. Companies, especially those with international operations, will not be disrupted and suddenly face a data divide. .

Sustainability with DevSecOps

DevSecOps is about integrating security, tools, and practices, to reduce friction between siled operations and get a business to market faster. This includes the ability to introduce and automate security early in a development process. The increasing prevalence of cloud-focused organizations and digital-native enterprises tends to move towards the implementation of DevSecOps, as there is a need to streamline and align security requirements, IT operations, and developer needs. . As a result, traditional processes and roles need to be realigned, and new skill sets like security analytics, automation, and machine learning will be needed. DevSecOps can help companies in the BFSI sector improve their business agility by tracking any related security changes or vulnerabilities through the stages of software development.

While each organization faces its own industry-specific challenges, the big challenge for financial services organizations will be embracing the complex multi-cloud hybrid infrastructure by implementing these best practices and leveraging the tools of modern data like Observability. Once companies overcome cloud complexity and achieve consistency, the peak performance and ability to redefine the customer experience with data promised by today’s level of cloud transformation can be achieved.

(Author Jyoti Prakash, Regional Sales Manager, India and SAARC Countries, Splunk)