Disruptive technology, including all of its competitive, regulatory, security and operational implications, is top of mind for financial services executives. But in addition to having their eyes on the future, financial services industry technology executives must also address their past, as they deal with the complexity of aging legacy systems and a dwindling pool of technicians who labor to keep outdated systems running long enough to implement more agile technology that will enable their institutions to face the future with confidence.
These views are clearly demonstrated in the responses to Protiviti’s 2016 Technology Trends Survey. The survey covers a broad spectrum of industries, but this report focuses on responses from C-suite executives and other technology leaders in the financial services industry (FSI). These responses, when compared with the results from other industries, yield a clear picture of financial services IT priorities, which have been organized into the following topics in this paper:
- Transformation and Innovation (a.k.a. Digitization)
- Security and Privacy
- Risk and Compliance
- Cost Pressures and the Case for Simplification and Legacy Modernization
In addition to the results of the trends survey, Protiviti’s experienced subject-matter experts share their unique perspectives on each of these topics, while mini-case studies presented throughout the paper illustrate how some organizations are approaching these challenges.
Within these areas of focus, several consistent IT concerns emerge, including:
- Responding to fast-evolving customer service expectations and the competitive threat of mobile and web-based financial technology (fintech) firms.
- Balancing the need for 24/7/365 system availability with need to quickly design and implement new products and services.
- Protecting data and ensuring privacy.
- Simplifying and consolidating outdated and heavily modified legacy systems, while increasing adoption of cloud-based infrastructure.
- Responding to ever-changing regulatory compliance requirements.