The main technologies in which financial services companies are investing include artificial intelligence (AI), blockchain, data analytics, the internet of things and robotic process automation (RPA). In addition to these, to upgrade legacy system, a growing number of financial institutions are turning to the cloud, which is seen not only as a driver of efficiency but also an enabler of change. The benefits of cloud infrastructure for financial services include cost reduction, better and more integrated security, improved scalability and flexibility – and it is seen as a more efficient and cost-effective approach to big data and analytics.
Automation is a particularly important component of digital transformation for financial services companies. Banking and insurance, in particular, are highly transaction-based industries that generate large amounts of data. Automatic processing of this data allows them to operate far more efficiently and make use of technologies, such as AI and data analytics, to retain and expand their customer base while managing their risks.
For example, companies can use chatbots to provide a better customer experience, AI technologies to extract complex information from documents, and analytics to gain deeper business insights. Many financial services companies are also taking advantage of the opportunity that automation provides to develop new products and services in collaboration with partners in their ecosystem.
In concert, all the technological advances that we see are vastly improving the connectivity that exists within financial services. In turn, greater connectivity is enabling banks and insurance companies to react and adapt faster in the face of constant and pervasive change.
Audit and financial services
Just as greater connectivity is transforming the financial services sector, it is also transforming the way in which the audits of financial services companies are conducted. Auditors are putting technology right at the heart of their audit strategy, with the aim of securing better access to the data that companies hold, and interrogating that data, thereby enhancing audit quality and delivering greater value to the stakeholders of audited entities.
Today, the use of digital technology is embedded in every phase of the EY Digital Audit from initial planning and risk assessment through to drawing the final conclusion. Like the companies audited, EY auditors are investing in the latest technologies and approaches. These include the agile and intelligent application of AI, data analytics, optical character recognition and RPA, cloud-based platforms and various other emerging technologies to better understand both the IT and business processes that organizations follow.