Banking & Financial Services 

The banking and financial services industry is going through a radical shift driven by the following

Increasing competition within industry and new layers like FinTechs

Changing business models

Mounting regulation and compliance pressures

Changing customer demographics and needs

Disruptive technologies

There is also immense pressure on organizations to leverage data to be more competitive. HEXANIKA products have been built on the philosophy of solving business challenges by leveraging data in simple, smart and efficient manner.

500%

Increase in regulatory changes in the developed markets

300+ Million

Pages of regulatory documents will be published by 2020

600+

Legislative initiatives

$270 billion a year

On compliance and regulatory obligations

$345 billion

Paid in fines since 2009

90% Time

Spent by analysts on data collection and organization, and only 10% on data analysis

$25 Billion

Spent on AML compliance

31%

Of Institutions identify data quality issues as key barrier

64%

Compliance Officers feel there is not enough time to manage all their compliance needs

Source: MEDICI

Challenges & Solutions

Increasing Competition

The Fin-Techs are typically targeting some of the most profitable areas in financial services by leveraging most advanced technologies. These new industry entrants are forcing many financial institutions to efficiently utilize technology to automate and consolidate it’s processes. It is also forcing institutions to leverage data wisely.

The objective to do this is to:
  1. Be competitive
  2. Leverage new technologies efficiently
  3. Increase revenue and decrease costs by adopting new technologies and by leveraging data

Changing Business Models

Business models are rapidly changing to keep pace with competitive pressures. Some of the changes include:

  1. Reduction in traditional banking products by millennial
  2. Reduction in customer base
  3. Big banks and financial institutions leveraging digital tech to start branchless banking
  4. Mobile Banking: growth comfort of users to do branchless banking
  5. 100% digital branches: Technology enabling operations from account opening to account maintenance and closing
  6. Data Driven Banking / Banking on Big Data: Advanced use of data by levering data science technologies enabled by AI and Big Data

Regulatory Compliance

Regulatory compliance has emerged as a significant concern for financial institutions, as regulatory fees have increased dramatically relative to earnings and credit losses since the financial crisis.

Multiple Regulations

Ranging from Basel’s risk-weighted capital requirements, Dodd-Frank’s, FASB’s current expected credit loss (CECL), and the allowance for loan and lease losses (ALLL), maintaining strict compliance places significant strains on resources

Heavy Penalties & Fees

Faced with severe consequences for non-compliance, keeping abreast of regulatory changes and implementing the controls necessary to satisfy requirements have resulted in increased cost and risk. Overcoming regulatory compliance challenges requires fostering a culture of compliance within the organization while also implementing formal compliance processes and systems.

Cost of Compliance

Additionally, costs associated with compliance management are also a major factor that is forcing financial institutions to change the way they do business. This combination of factors has led many institutions to create seek efficient data technology and reporting to assist in rationalizing business lines.

Data Intensive

Regulations and compliance today are heavily dependent on the ability to correlate data from disparate data sources.

Changing Customer

Customers expect personalized and meaningful experiences through simple and intuitive interfaces on any device, anywhere and at any time. By optimizing data, institutions can design solutions that result in increased customer satisfaction and wallet share. The objective of doing this is:

  1. Customer acquisition
  2. Customer Retention
  3. Cross-sale and up-sale of financial products
  4. Improving Customer Experience

Technology

A majority of banks and financial institutions CIOs believe that a greater portion of business will come through digital channels. However, organizations using inefficient, clunky and expensive technologies will not be able to keep up with this increasingly digital-first world. Without a solid, forward-thinking technological foundation, organizations will miss out on critical business evolution.

Technologies like cloud computing, artificial intelligence (AI), machine learning (MI) and Big Data all offer significant advantages for institutions looking to reduce costs while improving customer satisfaction and growing wallet share. They enable firms previously burdened with disparate legacy systems to make thing simple, smart and efficient.

Please see our solution section and reach out to see how we can make life for you:

Business Outcomes

Largest Core Banking Provider

TAX / TIN
Reporting

40%

Faster time to build solution

US Community Bank

Mortgage Reporting

40%

Faster time to reporting

US Based Regional Bank

Management Report

100%

Data Auditability

Large European Bank

SMART RECONCILIATION

40%

Resource Savings

Fifth Largest
Accounting Firm

60%

Development Cost, Licensing Fees & Time

Credit Card Risk & Revenue management

Community Banking Association

50%

Faster Solution Development

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