Top challenges faced by the finance and digital banking industry

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What are the top challenges faced by the finance and digital banking industry? Let iQuantM explain more.

We can refer Finance and Digital banking challenges to all those facts that would contribute to the hindrance of growth in the finance and digital banking industry. There is still a long way for this industry to stabilise. Let’s take a look at few of the factors:

Security

Security is the first and foremost thing that would come to our mind when we deal with money. But the sad part is that hackers can have illegal access to financial institutions, which would throw apart your cautious security steps if you don’t involve the right method. A few customers might not trust you thereafter. The point to note is that banking security does not come up with simple methods like downloading an antivirus and installing it. Safeguarding customers from fraudulent payments and fake banking contracts are every bank’s responsibility.

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Digitization at its core

Even though many customers have welcomed digital banking with warm hands, many don’t trust it yet. Trust us when we say that many are yet to believe that banking can exist on your mobile app rather than in the form of a brick and mortar store. This can make it extremely hard for you while you digitize banking completely.

Going beyond ancient banking systems

Majority of the banking systems are leveraging a few out-dated programming languages. In 2021, you might have to expand your horizons and look for a better option. Hence upgrading banking systems while installing suitable ones would take a lot of time while seamless digital banking has been everyone’s favorite nowadays.

Going along with non-financial institution

There are many non-financial institutions offering services which can be the same as digital banking. Many social media platforms such as Twitter have made it easy for users to carry out transaction to someone else’s bank account. There wouldn’t be any restrictions as posed upon the financial institutions. It might be extremely hard for these real financial institutions when they want to cope with it.

Internal conflicts and barriers

To digitize banking completely, there should be a cultural shift happening between both the employees and the banking system. There is an extremely unique way for banks to departmentalize. The technology level can also influence directly. A few departments might benefit from your digital banking system while a few would lay off their employees. Hence handling employee training smartly is a must.

Dilemma with building a banking system from scratch

While digital banking demands might be high, a few banks are extremely desperate to go ahead and adopt digital banking completely. Many of the banks are yet to adopt digital banking since they are not aware on which system would fit them perfectly. Hence a few might think about building a system from zero or adopting an already built system. Both kinds of system have their own pros and cons.

Handling risk management

While adhering to strict regulatory requirements, banking firms would have to protect themselves from potential cyberattacks to secure themselves from the obligations of risk management. They need a secure ERP system to store their data.

Portfolio management

Every client would have different demands. Digital banking solutions should manage every client’s portfolio in a systematic manner. Has the client invested in fixed deposit or mutual funds? Noting down such core information digitally to serve them better is vital.

Streamlining revenue streams

Every business needs to streamline their revenue streams properly. Banking sector is no exception. With financial services network, you can enable seamless corporate to bank and in turn, bank to customer connectivity to enable more innovative digital financial and banking services.

Assessing spend management

Tracking the total amount you have spent and integrating it with different spend categories would provide you with a clear picture. Or else, you would be missing out on crucial information regarding your spending. With an wholesome analytics, you can get clear info on spending.

Solutions such as SAP S/4HANA and SAP Commercial Management can let you skyrocket your business.

How can SAP help you out with simplifying these barriers? iQuantM is here to explain. Click here to know more.

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