January 12, 2023 | By admin

Happy New Year! With 2023 now underway, here are some of the top technologies to look out for in the Financial Services industry over the next 12 months. 

Revolutionary Artificial Intelligence (AI)

AI is revolutionising the way that Financial Services operate, building better customer interactions and optimising risk management and fraud detection. As customers expect quicker, more seamless customer service experiences, conversational AI in chatbots can be used to provide a personalised and efficient customer service experience. Automation through conversation means there is faster time to resolution, and members of the organisation are left with more time for innovative activities.  

Decision-making processes in Financial Services can benefit from using AI, where data can be quickly evaluated to provide quick conclusions of logical next steps. Microsoft has incorporated OpenAI into its platforms to provide organisations with pre-trained, large-scale AI models with cutting-edge comprehension and reasoning capabilities for extensive use cases. 

Additionally, in Insurance, an AI-powered underwriter workbench using Microsoft Power BI can present a 360-degree view of important data and metrics in one place, allowing underwriters to use real-time data insights to make better-informed decisions.  

Bespoke offerings based on behavioural data 

Customers’ behavioural data can also be used by Financial Services organisations to predict the best time to offer products and services based on the customer’s interests. Upsell opportunities can be leveraged by using predictive targeting, which uses AI and customer data to offer optimal engagement opportunities, increasing revenue. Offers specific to the customer can be made; for example, rich customer insights can create a single customer view for Insurance providers to suggest travel insurance for someone who likes to frequently travel.

Furthermore, this Sinch report found that 93% of banking customers seek products tailored to them, but only 33% feel satisfied with the current offers available to them, and 1 in 3 customers under 40 have changed banks due to poor mobile customer experience. By leveraging the power of data and AI to enhance customer experiences, Financial Services organisations can retain and attract customers in 2023 and beyond.  

So, how can they do this? Microsoft Digital Contact Center Platform is a modern approach to customer engagements that is growing traction throughout Financial Services. A perfect balance of digitised customer service, automated processes and human interactions, this platform seamlessly connects customer service channels.

RegTech 

As the Financial Services industry evolves in a digital world through digital transformation and new disruptive technologies, how data and AI affect risk compliance is a growing concern. This is where regulatory technology – ‘RegTech’ – comes in.   

RegTech is estimated to see a 200% market growth between now and 2026. Its main purpose is reporting, compliance and regulatory monitoring, and it is used to protect organisations from data breaches, cyber-attacks and other fraudulent online activities. In the Insurance sector, emerging risks and regulations mean that Insurance companies are finding it increasingly challenging to meet requirements efficiently and cost-effectively.  

Additional pressures from new regulations impacting Financial Services, such as the FCA Consumer Duty regulation change, mean that it is now more important than ever for organisations to harness technology to enhance their processes and maintain compliance in a digital environment. Microsoft Compliance Manager is a solution applicable across Microsoft platforms, allowing organisations to manage compliance needs within their organisation and region. This solution runs continuous compliance assessments, giving users a compliance score and providing suggestions on how to build the score to 100%, to minimise risks and improve overall compliance posture.  

Enhanced cyber-security measures

Cyber-criminals’ fraudulent activities are growing more and more sophisticated, and as Financial Services customers are adopting a digital-first approach to their financial matters, they are more at risk of attack. This means that Financial Services organisations must adopt more sophisticated fraud and cyber attack prevention strategies to assure their client base that their data and finances are secure.  

Digital identity is crucial in preventing modern-day fraud activity, particularly in Financial Services. To combat this, modern solutions like the Microsoft Digital Contact Center Platform hold biometric authentication capabilities to ensure that customer information is stored securely, and customer verification must take place before it is accessed.  

The most recent Microsoft security solutions provide end-to-end protections against cyber threats include:   

Dynamics 365 Fraud Protection can prevent Financial Services organisations and their customers from falling victim to fraud by sharing information about the risk exposure of a transaction with partner banks and issuers. This allows for better-informed decisions when evaluating purchase risk. Adaptive AI within Dynamics 365 Fraud Protection can quickly learn to recognise fraud patterns and provide insight into customising and improving protection strategies. A 360-degree view of customer and fraud activity is available on this platform, making any bot attacks, fake accounts, account takeovers and fraudulent access more visible while retaining customer privacy.  

A look forward

As 2023 unfolds, we look forward to continuing to digitally transform the Financial Services industry using Microsoft technology. Click here to find out about our work with Virgin Money, which earned us Financial Technology Partner of the Year at the Scottish Financial Technology Awards 2022. If you would like to find out more information about how to disrupt the Financial Services market with a Microsoft partner organisation, get in touch today.