There has been a significant upheaval in the financial sector. Traditional financial institutions (FIs) are battling these disruptors for dominance in the face of opposition from their FinTech and platform-based competitors.
Being adaptable is essential for avoiding being overtaken by startups and digital natives, especially given how important digital experiences are for collecting more and better customer data.
Traditional players must let go of their dated mindsets and legacy systems to achieve this. To successfully provide satisfying services to customers, it needs solutions that combine the cloud’s power with the necessary hardware engineering expertise.
Cloud Technology for Hyper-personalization
Many conventional FIs have already made investments in the cloud and will keep doing so. According to a 2021 Deloitte report, financial services anticipate increasing their use of cloud technology within the next three years by 65 percent. To meet rising customer expectations, financial institutions (FIs) are adopting a cloud-first strategy wherever possible.
Customers demand more personalized, higher-quality digital experiences. Due to the abundance of data, FIs must use tools that enable hyper-personalization to give customers a sense of understanding. This improves reliability and trust, boosting client satisfaction and retention.
Banks in Southeast Asia must use cloud-first solutions that integrate services like natural language processing, machine learning (ML), and AI-powered recommendations to create a seamless customer experience that is intuitive and natural to optimize data and fully capitalize on digitalization.
Artificial Intelligence (AI) and machine learning (ML) are more than just trendy terms. According to a global report by Rackspace Technology, most businesses in Asia have already started to benefit from AI/ML thanks to practical insights drawn from large and diverse datasets.
It is time for traditional FIs to use AI and ML to fully utilize their cloud deployments, data, and analytic systems. These technologies have the potential to uncover significant business efficiencies.
Free Your Data by Putting Your Best Foot Forward
As the financial services industry in the Asia Pacific region continues to change, cloud technology continues to significantly speed up digital innovation across all financial institutions.
As businesses use data analytics to maintain their competitiveness, increase efficiency, and create new revenue streams, new opportunities are opening. By 2024, cloud spending in the Asia Pacific is projected to increase to US$200 billion (about $620 per person in the US (Use eSignature)) with a CAGR of 20%.
Even though India continues to lead the region in terms of public and private cloud service investment and overall IT (Information Technology) spending, FIs may experience short-term difficulties due to issues with data governance, cybersecurity, and the skills gap.
The solution to these problems is to update the cloud backend, maximize insights, and improve decision-making.
Addressing these challenges will enable data analytics platforms to be redesigned with a cloud-native architecture approach, starting with minimizing performance issues, which can result in expensive downtime.
An effective cloud platform can provide businesses with scalable, secure, and bidirectional communication across their fleet of smart devices. End users can access the data and insights through the applications of the organizations. As a result, FIs gain security, compliance, and customer satisfaction as well, guaranteeing a positive return on investment.
Changing Focus to Cloud-Native Methods
Traditional players in the financial services industry require solutions that facilitate their migration to the cloud while maximizing the adoption of innovative technologies because of the business imperative that is digital transformation.
A bank’s ability to compete depends more than ever on its ability to allocate resources effectively and minimize waste. FIs can optimize their cloud environment to precisely meet their most pressing business needs by utilizing a cloud-native approach and expertise that offers flexible and tailored solutions. Costs are decreased, differentiation and go-to-market are boosted, and growth is subsequently fueled by delighted customers.