The financial sector was among the first to embrace digital transformation to revolutionize financial operations and systems, facilitate transactions, and make this a safer sector.

With years of digital transformation in the financial sector, this sector was also one of those that benefited most from integrating emerging technologies into company processes. So much so that it is predicted that, in 2025, digital in financial and banking markets will reach 164 billion dollars.

Among the technologies most used for digital transformation, Artificial Intelligence brings the most advantages to banking institutions, and it is predicted that, by 2030, it should reduce operating costs by 22%. Additionally, financial institutions have already seen a 19% increase in customer satisfaction.

 

Table of contents

Digital transformation in the financial sector

1. The impact of digital on the financial sector
2. Technologies most used in the digital transformation of the sector

The role of technology consultancy

1. FinTech consultancy
2. Technological consultants and competitiveness in the FinTech sector

Conclusion

 

Digital transformation in the financial sector

With each passing year, the financial sector has more processes that go digital and institutions that are born only in this business model.

Both out of necessity and opportunity, the sector knew how to take advantage of emerging technologies and put them at its service. And, while, for some financial and banking institutions, IT is a tool to optimize operations, others make the digital world a vital part of their business, becoming integrated into the FinTech sector.

By actively making use of emerging technologies, financial and banking institutions are able to remain competitive.

 

The impact of digital on the financial sector

Digital transformation in the financial sector has had a major impact on institutions at various levels, especially with the optimization and automation of processes.

Among the key elements that have changed most with digitalization, the following stand out:

 

• Customer service – With digitalization, customers have become the priority of financial institutions. Optimizing the consumer experience through automated and, consequently, faster processes, increases customer confidence and leads to them becoming loyal, but also to more consumers.
• Business models – Digital transformation has made the financial sector find new ways of doing business, finding new customers, and taking advantage of investment opportunities in a more effective way.
• Products and services – With digitalization, this sector has managed to make its products and solutions more innovative and offer better rates, tariffs, and remuneration.
• Transactions – Digitization has brought even more convenient and efficient ways of making payments and transfers.
• Security – With emerging technologies, the financial sector has strengthened its security systems in order to safeguard transactions and mitigate risks.

 

Technologies most used in the digital transformation of the sector

To carry out the digital transformation of the financial sector, institutions have relied on various emerging technologies.

Artificial intelligence, for example, is used to optimize chatbots and improve the customer experience, automate processes and detect potential risks.

Together with AI, Cloud Computing is another emerging technology that contributes most to the digital transformation of this sector, especially in reducing transaction costs and time, as well as ensuring the protection of customer data.

In order to innovate in their products and services, financial institutions have also invested in technologies such as Machine Learning and Big Data. This way, they can achieve better data management and analysis to make more beneficial choices for both the business and customers.

In turn, Internet of Things (IoT) devices have also made a major contribution to the digitalization of the financial sector, allowing payments and other transactions to be made more conveniently and without needing physical cash.

Finally, Blockchain technology has contributed the most to increasing the efficiency of financial solutions, increasing the level of transaction security, and also activating smart contracts and other agreements.

 

The role of technology consultancy

Consulting plays an essential role in the technology sector, especially in the FinTech area. Through these services, companies – and other financial institutions – can effectively focus on their core business and leave the implementation and management of processes to consultants.

Digital transformation is one of the fields of work of technology consultancy, as these companies advise on the use of technology to serve business. Within this characteristic, they carry out competitive and scalability analysis, as well as security and risk assessment.

In addition to this role, IT consultants are specialists in technological and digital solutions, from design to software development, including engineering.

With this expertise, consultants can help companies to be more efficient in their processes, reduce operating costs and, consequently, become more competitive.

 

FinTech consultancy

Financial Technology (FinTech) consultancy services advise and optimize operations specifically for financial entities so that they remain innovative in terms of their products and competitive.

FinTech consultancy is, therefore, one of the ways to drive digital transformation in the financial sector and the modernization of a company’s routine operations. With the technology and financial market expertise of consultants in this area, companies have access to detailed risk analyses, the implementation of technological processes, and resource optimization, among others.

Furthermore, if the company requesting consultancy services is already linked to the FinTech sector, consultants can be an asset in software development and maintenance, as well as in overcoming challenges.

FinTech consultancy is, therefore, an instrument for companies in the sector to be more efficient and competitive.

 

Technological consultants and competitiveness in the FinTech sector

Technological consultants are the main players in the world of FinTech consultancy, as they are the ones who contribute to improving productivity and efficiency. These professionals collaborate with financial institutions in numerous ways, including:

• Trend assessment;
• Strategic advice;
• Integration of technology with corporate objectives;
• Implementation of technological solutions in existing processes.

 

Conclusion

The digital transformation in the financial sector has fundamentally changed the way transactions and investments are made. Through emerging technologies, these have become more convenient for both companies and citizens.

Financial entities saw the digitalization of the sector to increase sales, improve customer service and make financial processes more efficient. To achieve this, and to remain competitive, they used technologies such as AI, Machine Learning, Big Data and Blockchain.

These entities have, over the years, counted on the help of consultancy partners, such as PrimeIT, to carry out technological transformation in the financial sector. These partner companies are essential for businesses to stay up to date with FinTech trends, processes, and tools.