Banks have traditionally been slow to adopt new technology, given the inherent risk, compliance and regulatory challenges. However, as their customers increasingly embrace digital channels, Tech Giants such as Amazon and Google, and FinTech companies such as Robinhood, are threatening to eat into the market share dominated by the incumbents. These new BFSI entrants are nimble and have a deep focus on improving customer experience by leveraging digital technologies such as AI/ML, Cloud, Automation, etc. These factors have prompted Banking and Financial Services organizations to invest in digitalization of their existing services, a trend which will only increase with time.
Hence, BFSI companies are increasingly channeling their digital investments on technologies such as Data Science, Big Data Analytics, Cloud, Security, AI/ML, and Blockchain. While 34% of the total Digital Engineering spend is being allocated towards Data Science & Big Data Analytics, Cloud comes a close second at 31%. This signals a shift in the BFSI segment’s earlier reluctance to move workloads to the Cloud.
But how can companies across the BFSI industry thwart the unrelenting advance of Tech Giants and FinTech companies? What is the role of BFS Global Centers of Excellence (GCoEs) in incumbents holding their ground against the onslaught of the newer entrants?