Digital transformation of the economy and a range of new technologies are driving an evolution in financial services (FS), blurring lines between different players, and shifting traditional roles between financial and technology firms. This is the landscape FS leaders face as they make decisions about partnerships and technology while developing strategies in a complex new ecosystem. In parallel, the public sector is seeking to advance innovation while they grapple with modernizing the rulebook and finding the expertise to understand new systems and risks.
Cloud stands out in the report as an essential technology tool to help financial services catch up with the digital economy and rapidly transform service offerings; however, it is also making financial institutions dependent on hyper scale tech entities who are increasingly taking over the customer facing role with embedded banking and payments activities disappearing into the end consumer service rather than standing distinct. At the same time, regulators have come to appreciate the value of cloud for digital transformation but have an eye on concentration risks and competition concerns.
This report continues our series where we hear about these issues directly from those who are leading digital transformation at banks, insurers, technology firms, cloud service providers, public sector - regulators and supervisors. More than 150 have shared their insights and point of view to shape these findings and help identify how the promise of digital transformation can be realized.