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Three IT Trends Re-Shaping the Financial Industry


Financial organizations operate in an incredibly complex environment. From the high-level security protecting data and assets, to far ranging regulations ensuring above board activity, to the intense speed of the market, technologies supporting financial organizations have a heavy load to bear. For this reason, financial organizations IT systems tend to be built with many different parts and more interconnected components than those of other markets. Even more, increased regulation on transparency, risk, auditing, reporting, and systems has continuously driven the surge in financial IT spend over the past few years. Among this diversity and increased need for solutions that can meet ever-changing needs, there are three overarching IT trends that are most powerfully impacting how financial organizations conduct business:

Open Data

With more pressing demands for transparency, particularly within the public sector, financial organizations are implementing solutions to help entities open their data and more efficiently access other data sources. In doing so, the organization’s constituency becomes better informed and can get more involved in the way their dollars are spent and used. Yet, many organizations still struggle to provide open and public access to the types of data and information that customers really need in an easy-to-consume manner. To make data more transparent and useable, Socrata has identified four pillars to better open data for organization to center their focus on:

  • Citizen Experience

Putting valuable information at the fingertips of customers in a format and context that’s easy to consume and that delivers a highly-satisfying experience should be key in any open data initiative

  • Data-Driven Decision Making

Data-driven governance should encourage leaders to set clear, measurable goals for their organizations and rigorously track performance against those goals

  • Operational Efficiency

By moving information-sharing infrastructures to the cloud, consolidating and re-focusing IT assets, providing users with self-service access to information, and reducing the burdens of system maintenance, organizations can save millions of dollars in technology investments and redeploy their human capital to focus on more strategic initiatives

  • Economic Impact

By embracing open data, organizations can help create jobs, influence consumer spending, and increase tax revenue for local economies

 With these focus areas, the task of opening data becomes more manageable.

Virtualization

The financial industry has always worked in a mobile, always-on environment. Virtualization is tailor-made for the industry’s needs so that transactions and finance professionals can access critical information wherever and whenever they need. Clearcube defines this always-on access as a Centralized and Virtualized Infrastructure (CVDI). CVDI reduces the reliance on traditional PCs and gives professionals the ability to log in from any machine to a centralized data center via a virtualized private cloud. This reduction of PCs frees workspaces from size, noise, and heat impacts of the bulkier hardware. Virtualization provides more robust business continuity and processing power than would be affordable to have in-house. And, by removing the need to store information locally, security risks are reduced. All this means that financial traders can have their client information follow them to transact business from any location on the network through a zero client to the desired host resource. Financial traders can change their physical locations to collaborate fluidly and learn from each other without having to add, move, or change anything.

Fraud Detection

The explosion of descriptive and real-time data available to financial firms has offered new options for internal operations management and fraud detection. According to a recent report, nearly 10,000 corporate executives reported that compliance was a primary driver of spend among financial services firms 14% more often than in all other industries. However, having more data generally improves the chances of identifying fraudulent activities, but financial data typically tends to live in silos. At present, the industry’s investment with big data tools related to fraud has been targeted at the identification and prevention of nefarious activities that lead to direct costs for banks, payment processors, and their customers, with little focus on money laundering. In response, Cloudera can help organizations integrate their data, secure it, store it cost-effectively with Hadoop, and make it available to data analysts, engineers, and data scientists who can answer key questions about fraudulent activities, including the wide variety of fraud practices coming into play today.

Financial trends will continue to evolve as hackers hone their methods, the data explosion continues, and security becomes ever-more critical. To learn more about how we’re helping support firms amongst these trends, click here to get free resources and whitepapers.

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