Top 5 IT challenges of Banking and Finance Industry

Banks who rely on legacy systems often face issues with resiliency, bandwidth, cybersecurity, capacity, regulatory and legal compliance, and redundancy. These can draw heavily on a financial institution’s resources and compromise their ability to stay compliant.

One solution is to upgrade from legacy systems to digital platforms. Banks who do this often improve efficiency, cut costs, and stay competitive.

Digital transformation is the solution banks need, and those who have invested in cutting-edge digital strategies such as agile methodologies, artificial intelligence, and analytics have managed to pull ahead and increase the gap between them and those banks that did not invest in digital transformation during the pandemic.

Using the refactoring process, developers can streamline code and make it simpler without impacting user experience. This can make it easier for development teams to work with the code and add new features in future.

Another way to ensure compliance is to conduct an annual audit. Audits help bank stakeholders identify gaps in their legacy systems, providing opportunities to keep their business data – as well as their customers’ data – safe and secure. This is done by introducing new systems that replace the older legacy systems.

Although banking systems have complex security measures in place, cyberattacks are still a reality. But users may not realize that their online habits could be putting them at risk.

Fraudsters exploit poor privacy habits, like using weak passwords and unsecured networks, to steal login credentials and commit phishing attacks, which could result in fraudulent bank transactions.

The Banking and Finance Industry is one of the most important sectors of the global economy and it is essential that the customer experience is top notch in order to keep customers loyal and ensure that they continue to do business with the institution.

In order to achieve this, it is necessary to develop software solutions that are user-centric, which takes into account the needs of the end user.

One of the biggest challenges that banks face is ensuring that their software solutions are easy to use and navigate. This is particularly important for customers who are new to the industry or who are not familiar with the technology used by banks.

It is also important that the software is easy to understand and provides a clear understanding of the financial products that are available.

One way that banks are able to improve customer experience is by developing software that is cloud-based. This means that the software can be accessed from any device or location that has an internet connection. This is particularly beneficial for customers who are not always able to visit the bank in person.

Another way that banks are able to improve customer experience is by developing mobile apps. This allows customers to access the banking services that they need from their smartphone or tablet. This is particularly beneficial for customers who are on the go and who want to access their banking services without having to wait in line.

Innovation is needed to come up with technological solutions that can alleviate customer worries about their funds being at risk when technical issues occur.

For example, communication of planned system downtime like scheduled maintenance can be highlighted, so that customers know when to expect service interruptions.

As the banking and finance industry grows, it is essential to have a retention strategy in place to retain employees. There are a number of digital solutions that can help banks lower employee retention.

By providing innovative digital solutions, you can ensure that your employees are happy and engaged with your company. By lowering employee retention, you are ensuring that your company retains its competitive edge in the banking and finance industry.

Challenges for the banking and finance industry include the need for increased efficiency and resilience, a lack of sufficient bandwidth, cybersecurity and capacity issues, regulatory and legal compliance, and redundancy. One solution is to upgrade from legacy systems to digital platforms, which often improves efficiency, cuts costs, and stays competitive. The fact is that at Scalo, we can support the financial industry through the support of experts with industry experience.