# A mindset change is needed in the financial services industry
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-05-21
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Impact of Digital Transformation on Financial Services Amid
Meta Description: Learn how the pandemic has accelerated the need for digital capabilities in financial services, with insights on AI, cloud tech, and fintech disruption.
URL: https://financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industryhtml

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_By **Steve Rackham,**_ _Senior Solutions Engineering Manager, EMEA Global Finance at NetApp_

Digital transformation is imperative for success in the financial services industry, and this has been the case since well before the COVID-19 pandemic hit.  As technology has developed, customer expectations have risen, demanding instant and personalised services from financial services.

Technologies such as Artificial Intelligence (AI) and cloud-based technologies can enable [financial organisations to offer customers the services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") they demand. For example, AI can analyse customer [data collected from previous interactions to help organisations](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") understand their customers better and provide hyper-personalised experiences, which consumers have come to expect.

But some of the traditional players in the [industry have been slower to adopt these emerging technologies](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry").

Traditionally when adopting new technologies, many [financial services have had to deal with one change](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") at a time. For example, deploying new IoT sensors, or installing a new data centre. But now, the industry is [facing many different changes](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") happening simultaneously and are under pressure to keep up. Trends such as AI, cloud, security and more continue, to intertwine and make things more complicated than adopting one new technology solution.

Added to this is the emergence of fintechs. These digital-first businesses are born in the cloud-era and, as a result, are more agile and adaptable to change, making them capable of changing their [business model overnight if needed](https://www.financedigest.com/what-is-premises-liability-coverage-and-why-does-your-business-need-it.html "What is Premises Liability Coverage … and Why Does Your Business Need It?"). Fintechs have shown traditional players what is possible when it comes to technology. Also, while fintechs are subject to the same FCA regulations as bigger [financial services](https://www.financedigest.com/boom-or-bust-how-the-financial-services-sector-is-coping.html " Boom or Bust: how the financial services sector is coping"), these agile platforms highlight how businesses can be disruptive and take a data-driven approach to be successful.

**The COVID-19 impact**

So how has COVID-19 [impacted the digital transformation journey of the financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud") industry? The biggest change is undoubtably the shift to online-only, where banks and other traditional [financial services](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") have had to move most of their customer interactions to a digital platform. This includes prioritising [enabling customers to complete the most common service journeys remotely,](https://www.hsbc.com/insight/topics/how-banking-will-change-after-covid-19) such as resetting PINs, changing loan terms, paying for groceries or filling in forms electronically.

But this has also accelerated the way we as [consumers interact with digital services](https://www.financedigest.com/do-consumers-want-robo-advisory-services.html "DO CONSUMERS WANT ROBO-ADVISORY SERVICES?"). For example, the move away from cash and towards digital payment methods and the way we use banking apps to check balances, make payments and submit [credit card or loan](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") applications.

It is [clear we are working towards a digital future](https://www.financedigest.com/future-cheque-clearing-model-places-emphasis-on-speed-and-innovation.html "FUTURE CHEQUE CLEARING MODEL PLACES EMPHASIS ON SPEED AND INNOVATION") and we’ve had an indication of what’s possible. It’s also likely that we’re moving to an [era of more permanent change](https://www.financedigest.com/changing-for-the-better-a-new-era-for-finance-and-accounting.html "Changing for the Better – a New Era for Finance and Accounting"). This makes it more important than [ever for financial services](https://www.financedigest.com/can-financial-services-brands-ever-be-credible-on-social.html "Can financial services brands ever be credible on social? ") to have the right digital capabilities to serve their customers properly. Fintechs already have an advantage here and the bigger [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") have started to adapt. But for many, [it’s time](https://www.financedigest.com/why-its-time-to-adapt-to-the-virtual-world-how-to-master-online-negotiations.html "Why it’s time to adapt to the virtual world: how to master online negotiations") for a step up.

**A** [mindset change](https://www.financedigest.com/dispute-management-mindset-changing-the-disputes-game.html "Dispute Management Mindset: Changing the disputes game")

This starts with having the right mindset. It’s easy for traditional companies to remain stuck in their ways and continue working in the same way. Particularly as the [banking industry](https://www.financedigest.com/the-survival-of-the-banking-industry.html "THE SURVIVAL OF THE BANKING INDUSTRY") is one of the oldest industries in the world. But by not embracing change, it [becomes even harder to adapt when external events force change](https://www.financedigest.com/quidditch-becomes-quadball-as-sports-bodies-change-name.html "Quidditch becomes quadball as sport’s bodies change name").

Of course, COVID-19 has accelerated this and forced many to be [open to change](https://www.financedigest.com/how-open-banking-will-change-the-banking-industry-in-the-next-10-years.html "How Open Banking will change the banking industry in the next 10 years"). [Financial services](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace") have been put in a situation to adopt more technology and new working principles as they haven’t had a choice. But this isn’t the time for the industry to be complacent. [Financial services businesses must learn](https://www.financedigest.com/what-can-we-learn-from-financial-services-security.html "What can we Learn from Financial Services Security?") from the pandemic and keep the mindset of adaptability, agility and change moving forward.

[**Future of financial services**](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ")

The pandemic has accelerated the shift to a more [digital world](https://www.financedigest.com/be-the-digital-eyes-and-ears-of-your-business-from-anywhere-in-the-world.html "Be the digital eyes and ears of your business – from anywhere in the world!") and in turn, customers are using digital channels more than ever. If [financial services](https://www.financedigest.com/data-fake-will-be-the-new-real-in-financial-services-in-2023.html "Data: Fake will be the new real in financial services in 2023") don’t adopt a different mindset when it comes to embracing new technologies, they not only risk being left behind by their competitors but also risk losing customers. Many consumers don’t want to interact with [companies whose systems](https://www.financedigest.com/setsquared-companys-maths-system-adds-up-to-pitch-perfect-palace-success.html "SETsquared company’s maths system adds up to pitch-perfect palace success") feel outdated and complicated.

Technologies such as AI and cloud can offer huge amounts of [benefits to financial services](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES"), and following the last 18 months, should give companies massive amounts of information about  their customers. [Financial services have the opportunity to analyse this customer data](https://www.financedigest.com/how-big-data-is-sending-shockwaves-through-the-financial-services-sector.html "How big data is sending shockwaves through the financial services sector") to understand and redefine the customer experience moving forward in this new landscape. By also adopting a mobile-first view, from contactless banking to account access, organisations in the financial [services industry can ensure they are providing accessibility whenever the customer needs](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") it.

After all, the customer is always right


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