Overview
The Banking, Finance and Insurance (BFSI) sector provides a vital service to the global economy by managing the most important resource for any organization – money! The financial system has been in existence since time immemorial though the first commercial bank was formed in the 16th century.
It is a very diverse industry covering banks, financial institutions, stock markets and intermediaries, insurance companies, etc. It even includes government owned banks as well as Central banks.
This sector is characterized by the presence of large global organizations as well as strong regional players. It is one of the most highly regulated industries – yet offers a lot of room for innovation in terms of products and services that can be offered to customers.
The size of the players in the industry range from the largest banks in the world each managing over a trillion dollars’ worth of assets to the small town financial institutions. All of these organizations are characterized by a high degree of automation and heavy reliance on Information Technology.
The health of the BFSI sector is a crucial pre-requisite to the health of the economy as a whole.
Challenges
Banking and Finance has undergone many upheavals in recent times, coping with one several cataclysmic events like the dot com bust, subprime crisis and so on. Some of the major challenges confronting the industry are as follows.
- Customer experience: This is a highly customer oriented industry and customer experience is paramount. Customers demand more and more convenience in being able to access their accounts – from anywhere in the world and through different devices while expecting fool proof security.
- Regulatory pressures: Systems have to be geared to handle all kinds of regular and ad-hoc regulatory and compliance requirements. It may range from cooperating with governments in clamping down on tax evasion or cutting of sources of funding to terrorist organizations.
- Information security: As they handle highly sensitive information, the systems must be geared to fight off different kinds of hacker attacks. A single breach of data may prove to be fatal for an organization.
- Disruptive technology: Technology is threatening to disrupt traditional channels and markets. A good example is the crypto-currencies which are capable of turning the international financial markets upside down. Systems have to be agile in being able to cope with, harness and come up with such innovations.
Solutions
PMSoft has been working with global organizations in the BFSI sector for over 13 years and understands these challenges. Here are some of the ways in which PMSoft has been helping organizations.
- Advanced risk management: Being able to manage risks on behalf of customers requires a thorough knowledge of the discipline of risk management. PMSoft has deep expertise in the theory and practice of risk management.
- Agility to embrace flexibility: Systems have to be nimble and adaptable to change – often at very short notice. This requires embracing Agile methodologies for system development. PMSoft has been advising organizations about how to become truly Agile by using iterative and incremental approaches to system development.
- Stakeholder Engagement: The number of stakeholders in the segment is very large – including customers, intermediaries, vendors, regulators, etc. A critical success factor is understanding stakeholders and being able to influence them without authority.
- Leadership Development: PMSoft has been working on Management Development Programs that help organizations develop the next generation leaders to drive change. For a people intensive industry, the development of people is probably the biggest driver for success.
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