The financial services sector is at a critical juncture where the conventional methods of conducting business are no longer adequate. Customers in the digital age expect more from businesses than simple transactions; they want personalized experiences that feel connected and intuitive. This change in expectations is driving financial institutions towards a Total Experience (TX) strategy. TX brings together customer, employee, user, and multi-experiences into a single framework to deliver an easy and cohesive experience across all touchpoints for all the stakeholders.
But the journey to TX isn’t without its challenges. Many financial institutions are held back by outdated and inflexible technology stacks that prevent them from innovating and meeting changing customer needs. Despite these obstacles, the rise of cloud solutions is the way forward. Our research, The Blueprint to Total Experience, shows that 80% of “experience leaders” effectively integrating all experience touchpoints have already adopted cloud and are using it to realize and scale TX.
Challenges to scaling TX in financial services
While TX seems like a clear pick, scaling it in the financial sector is challenging. Financial institutions require solutions specifically designed to meet their unique needs.
Outdated legacy systems: Many financial institutions rely on outdated systems. These systems struggle to keep up with modern demands. The old technology not only delays the launch of new offerings but also puts financial institutions at a disadvantage when it comes to responding to changing customer needs and market conditions, in an industry where agility is key.
Complex regulatory compliance: Navigating strict regulations slows down TX initiatives. This makes deploying new technology and innovation complicated. Financial institutions need to balance innovation with compliance, making the task of transforming customer and employee experiences even harder.
Fragmented data silos: Data is often split across different departments and legacy systems creating silos that prevent a single customer view. This is due to a combination of factors, including mergers and acquisitions, which create a patchwork of disparate systems that aren’t fully integrated and lack a unified data strategy.
Security and privacy concerns: New technologies, especially cloud-based solutions, introduce new vulnerabilities that cybercriminals can exploit. Financial data is sensitive, and any breach can result in financial loss, regulatory penalties, and damage to the institution’s reputation. Data privacy laws like GDPR and CCPA require financial institutions to handle customer data securely.
Cloud: The catalyst for TX transformation
Cloud solutions are the answer to scaling TX in financial services. They offer the agility, scalability, and technology to deliver TX at scale.
Enhance product uptime: Cloud provides a strong infrastructure for high availability and reliability. According to our research, 60% of experience leaders use cloud to increase product uptime and reduce operational costs. Cloud allows to scale resources as needed, so peak loads are managed without disruption.
Balance compliance with innovation: Cloud enables agile development so financial institutions can innovate fast and deploy new features, systems, products, and services quickly. Agility is key to navigating complex regulatory requirements like CCAR and Solvency II for frequent cross-border transactions. 49% of successful firms delivering TX using cloud admit that they can bring new products to market quickly so they stay competitive in a fast-changing market.
Achieve unified and tailored experience: Seamless integration is key to a TX. Cloud platforms connect systems, databases, and applications, eliminating data silos and giving a 360-degree view of the customer. This is a top priority for 59% of leading organizations that use cloud integration to achieve a unified experience across all touchpoints. The capabilities of TX will enable financial institutions to understand customer behavior and deliver tailored experiences. 48% of leading organizations are using cloud for these advanced analytics, so cloud is critical to the future of TX.
Strengthening data protection through cloud adoption: Cloud platforms address security and privacy concerns by offering built-in encryption, constant monitoring, and advanced identity management features. This allows financial institutions to meet the security standards to safeguard customer data.
Conclusion
Financial institutions that invest in cloud and prioritize TX aren’t just keeping up with the times—they’re positioning themselves as leaders in the next era of financial services. Demand for third party service providers for TX continue to rise as it allows institutions to build custom solutions specific to their needs. 28% of experience leaders use third-party vendor services to accelerate their TX initiatives, which is expected to grow to 42% in the next three years. By harnessing the agility, scalability, and innovation of cloud, they can build stronger customer relationships, and drive business growth. Scaling TX requires planning, execution, and a willingness to innovate; the rewards—customer loyalty, operational efficiency, and market leadership—are worth it. Now is the time to get on cloud and go for TX. Institutions that do so will be shaping the future of the financial services industry.
Visit our website to download the full report and for more information and resources.