The Digital Battle

Risk Management Solutions In An Increasingly Digital Financial Sector

In the world of finance, digitization is an ever-growing force. What began as simple technology to enhance customer service in the form of chatbots on banking sites has grown into a digital transformation of everything from how money is deposited and spent to how it is counted and kept safe. As the digital transformation of the finance sector is completed, risk management must be assessed — both in managing the risks that come with digitization and in digitizing the process of risk management itself.

FINANCE IN FLUX

One of the biggest challenges faced by an increasingly digital financial world is that it is always changing. In addition to needing to meet the demands of customers who expect immediate service, financial institutions are being challenged by fintech startups who follow the e-commerce model. Varo, Chime, and SoFi Money are examples of digital-only banks that are attracting customers through offers of high interest rates on savings accounts, no international fees, free checking, and instantaneous mobile banking. Traditional financial institutions have the option of either digitizing or isolating themselves from a large customer base expecting the mobility, instant gratification, and personalization they find elsewhere.