# Keeping ahead of network challenges in the finance industry Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-04 Category: Uncategorized Category URL: https://financedigest.com/category/uncategorized Meta Title: Digital Transformation in Finance: Navigating the New Era Meta Description: Join Alan Hayward to explore how digital transformation and open banking are reshaping the finance industry. Learn why investing in network technology is URL: https://financedigest.com/keeping-ahead-of-network-challenges-in-the-finance-industryhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1244666924-1736816004574-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/picture2-1736816004498-compressed.jpg)_ _By_ **_Alan Hayward,_** _Sales and Marketing Manager at_ [_SEH Technology_](https://www.seh-technology.com/) The finance industry is undergoing a radical shift, driven by changing business models, mounting compliance pressures, disruptive technologies and new competition from FinTechs. Although operating in an evolving landscape may be a challenge for financial service organisations, it also places them in a pivotal position to cultivate and define this new era. Across sectors, financial organisations have the potential to overcome challenges and ascend to new heights by prioritising digital transformation and partnering in new ways to innovate and increase efficiency. This new marketplace of [open banking](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") has enabled systems to quickly and seamlessly integrate with new platforms and applications. Physical [banks and paper systems are rapidly being replaced by networked digital](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") ecosystems. Regardless of whether a [business was born in the digital](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!") era or is now catching up to it, none remain unaffected from the digital revolution. With 77% of businesses in the financial services sector planning on increasing their digital investments in the next year. It is [critical that businesses take an analytical and proactive approach to their digitalisation strategies to identify and prevent future](https://www.financedigest.com/smarter-safer-stronger-cybersecurity-is-now-critical-to-digital-future.html "Smarter, safer, stronger cybersecurity is now critical to digital future") network challenges in this fast paced industry. **How networks have become essential for the [modern finance](https://www.financedigest.com/why-do-modern-finance-functions-strive-for-automation.html "WHY DO MODERN FINANCE FUNCTIONS STRIVE FOR AUTOMATION?") sector** 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 ") are being reshaped by the globalisation of financial markets, technological advances, and structural changes, including the lowering of regulatory barriers. The [international focus of financial](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") services has involved increased financial integration, higher cross-border mergers and acquisitions of financial institutions, and lower barriers between markets. As the financial services industry grows globally, the need for communications and transactions spanning borders means that the [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") has increased its reliance on the IT network. The [network is considered one of the most critical resources in an organisation](https://www.financedigest.com/6-steps-to-organising-an-introvert-friendly-networking-event.html "6 Steps to organising an introvert-friendly networking event "), providing the means of transmitting essential data from one computer to another. Networks are the hardware and software that enable computers to [share resources and exchange data](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data"). They are categorised as internets, intranets and extranets. The Internet is a collection of individually managed networks, connected by intermediate networking devices, that function as a [single large network](https://www.financedigest.com/single-broadband-network-is-right-step-for-italy-vivendi-says.html "Single broadband network is ‘right step’ for Italy, Vivendi says"). Intranet refers to a privately maintained computer network that can be accessed only by authorised persons and is limited to one institution, whereas extranet is an extension of an institution’s intranet, used to [connect business](https://www.financedigest.com/keeping-data-connected-for-greater-business-value.html "Keeping Data Connected for Greater Business Value") partners. The [financial services sector](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") is currently focused on creating a faster, more efficient service for customers by creating mobile-based options. Since cloud-based technology information is so often used, the [importance of networks](https://www.financedigest.com/the-importance-of-networking-for-smes.html "The Importance of Networking for SMEs") in the finance sector is incredibly vital. [Network data has advanced](https://www.financedigest.com/uks-morgan-advanced-materials-reports-cyber-security-incident-on-its-network.html "UK’s Morgan Advanced Materials reports cyber security incident on its network"), now harnessing the ability to flow through an even greater variety of mechanisms: communication software and hardware, telephone wires, broadband cable, wireless and microwave transmission units, satellite, fibre optics. Therefore, [today’s industry wide networks and transactional systems](https://www.financedigest.com/from-fragmented-systems-to-unified-cpm-unicredit-prepares-for-todays-finance-challenges.html "FROM FRAGMENTED SYSTEMS TO UNIFIED CPM – UNICREDIT PREPARES FOR TODAY’S FINANCE CHALLENGES") must be able to support an unpredictable number of concurrent users and transaction types. **Future-proofing the networks in the** [finance sector](https://www.financedigest.com/finance-is-the-next-big-sector-to-be-ubered.html "Finance is the next big sector to be Uber’ed") The [digital transformation of the finance](https://www.financedigest.com/5-key-takeaways-from-the-finance-sectors-digital-transformation-revolution.html "5 Key Takeaways From the Finance Sector’s Digital Transformation Revolution") sector, including the emergence of electronic finance, has increased the importance of networks in the production and distribution of financial services. However, [banks and insurers are subject to ever more cyber-oriented regulations that range from identifying required controls to more specific regulatory technical standards or reporting](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") requirements. The widespread adoption of online [banking and mobile transactions present an opportunity](https://www.financedigest.com/uk-retail-banks-is-irrelevance-curtailing-opportunity.html "UK Retail Banks: Is Irrelevance Curtailing Opportunity?") for network vulnerabilities. As financial transactions are being used so frequently, many financial institutions have to adapt to the latest [security and updated technology in order to keep](https://www.financedigest.com/the-challenge-of-keeping-data-secure-why-in-house-security-isnt-enough.html "The challenge of keeping data secure: why in-house security isn’t enough") crucial systems protected. There are billions of financial transactions occurring on a day to day basis, this is why the financial [sector must invest in their network infrastructure](https://www.financedigest.com/invest-in-infrastructure-to-escape-the-starvation-cycle-warns-leading-nonprofit-sector-strategist.html "Invest In Infrastructure To Escape The ‘Starvation Cycle’, Warns Leading Nonprofit Sector Strategist"). The software tools and computer systems that are in place for automation, create a huge importance for the use of networks in finance. In addition to basic services, such as payment and money transfers, there is also a growing demand for more involved functions to be fully deliverable over smart devices and laptops, including mortgages, insurance, loans and [wealth management](https://www.financedigest.com/analysis-credit-suisse-collapse-threatens-switzerlands-wealth-management-crown.html "Analysis-Credit Suisse collapse threatens Switzerland’s wealth management crown"). The [financial services industry](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") also requires that these digital services be delivered with a high degree of security and reliability. To thrive in today’s competitive digital era, [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") must invest in the right technology to transform the underlying network that powers their essential offerings and differentiation. Leveraging network infrastructure based around an integrated and streamlined backend is one of the most important [steps in preparing](https://www.financedigest.com/exclusive-naftogaz-ceo-prepared-to-step-down-if-it-would-facilitate-debt-deal.html "Exclusive-Naftogaz CEO prepared to step down if it would facilitate debt deal") for the latest developments in the digital age. With the right systems in place, financial services organisations can ensure that all customers and [employees can access](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") the full range of services available, no matter their location. Ensuring that their [network infrastructure is secure](https://www.financedigest.com/new-demands-on-network-security.html "NEW DEMANDS ON NETWORK SECURITY") and efficient will equip financial services providers with the tools they need in the increasingly digital financial landscape. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---