While FY16 promises a lot of opportunities by exploring conventional and unconventional markets, take a look at the challenges the sector will face in 2016.
Information security: All the measures employed for data security is in conventional terms. It’s about time the companies change the models. While there is innovation on one side, you need to manage information security on the other hand.
Innovation should result in RoI: With some of the current transaction models out there the path to profitability may not be clear. The traditional way the IT project is conceived has to be changed. But that kind of time isn’t available and the environment is changing quickly. The sector doesn’t have the time to wait. Therefore, innovation has to be quick but also has to yield results.
Financial services does face a major problem when it comes to hiring the right talent. Therefore, 2016 should be a year where growing talent, acquiring it and retaining it should be top priority.
Cybercrime: The IT systems of these financial institutions are expanding. But that doesn’t mean there is enough safety. Cybercrime is something that we should all look out for. As cybercrime made headlines in 2015, it is important that these institutions advance their security and infrastructure.
New players: One almost doesn’t know who can come up as a competitor in the industry. “It won’t be another insurance player for sure, but customers can also go to an app provider or an aggregator. Therefore, it’s necessary to be completely aware of the competitor,” says Datta.
Shortage of talent: Though this is true for all the sectors, financial services does face a major problem when it comes to hiring the right talent. Therefore, 2016 should be a year where growing talent, acquiring it and retaining it should be top priority. Also, acquiring talent that can boost security systems should be top priority.
Regulatory scrutiny: Financial institutions will have to deal with the risk compliance issues by investing heavily in it. They also have to ensure proper risk monitoring.
Providing omni channel experience: On account of omni channel business, consumers will demand uniform experience, be in on various devices or functionalities like talking to a customer care or walking into a branch. “We aren’t ready to provide this omni channel experience to the consumers yet. We do not have the necessary technologies for it,” says Gaitonde.