Contemporary Challenges Of The Financial Institutions

Overview:
Financial institutions around the globe are dealing with the effects of the covid19 pandemic. They are
working round the clock to understand the imminent threat & challenges on the financial system. Amid
all this crisis, financial industry has undergone a fundamental shift especially in Pakistan. In the
unprecedented year of 2021, as more people are relying on the digital platforms to handle the financial
tasks and expect businesses to meet their new digital needs, the financial industry have been pivoting
towards building such products that fulfill the customer needs & help their businesses to thrive. The
focus on digital transformation has accelerated. However, finding ways to not only exceed customer
expectations but also stay competitive presented as main challenges in this year.

Key Players:
The key players/participants in the financial market are as follows:

 The individual
 Firms or Corporates
 Government
 Regulators
 Market Intermediaries

Challenges of the Sector under Discussion

 Keeping up with latest technology trends - Implementing the latest technology is key to
meeting business goals and ties into both of the previously mentioned challenges – unifying the
customer experience and staying competitive with FinTechs. Contact center technologies are
continuously evolving, particularly in the ways financial institutions can reach and communicate
with their customers.
 Data breaches & Cyber Security- Financial services are already one of the most heavily
regulated industries. As the industry shifts to new technologies, so do the regulations.
Regulators are moving to increased supervision and enforcement. Some of the regulatory
challenges expected in 2021 include data protection and governance 
 Unified Customer Experience: Customers are looking for an integrated experience, or a “one-
stop-shop”, for all of their banking needs. While the financial industry has already migrated to
online banking and digital experiences, keeping up with growing customer expectations
continued to be a challenge in 2021.

Opportunities in the Financial Institutions

 AI Disruption- Automation, artificial intelligence (AI) and the cloud are essential pieces for
financial services to keep up with FinTechs, stay up-to-date on technology, and deliver on ever-
more demanding customer expectations. 
 Turning C-suites into Citizen Data Scientist: It is an opportunity for the organizations to offer
such high end technical solutions to the C-level executives that lessen their dependency on the
IT department & they can make the decisions on their own in an efficient way. Precisely, turning
them into citizen data scientist.