The importance of digital transformation in finance industry organisations should not be ignored. Embracing digital transformation enables financial institutions to become more agile, more scalable, and to make better decisions based on big data.
At the same time, there are challenges to the digital transformation finance businesses would like to put in place. Issues like maintenance of hardware, management of IT services and cyber security are obstacles, but they are not insurmountable.
In this guide, we will look at digital transformation in finance sectors, the benefits of going digital, and how financial services organisations of all sizes can get started.
What is digital transformation?
Digital transformation means embracing digital processes in your day-to-day operations. That can mean putting IT hardware infrastructure in place, the software you need to carry out your work more efficiently, and policies that promote the use of IT within your workforce.
In present-day terms, digital transformation often includes cloud computing and sophisticated business management platforms, which increasingly are powered by AI.
The end result is an agile and intelligent business model, which unlocks higher standards of customer service, more efficient processes and, ultimately, decision-making that boosts your business’s bottom line.
What impact can digital transformation have in finance?
The benefits of digital transformation in finance industry markets are compelling. The clue is in the name – this is a truly transformational opportunity for businesses right across the finance sector.
As a service industry, finance organisations act as intermediaries for both businesses and consumers. Whether those are bank account-holders, investors, borrowers or something else, service providers need to be able to cater to their customers’ desire for digital services.
In an FCDO policy paper published in March 2024, the then Conservative government stated: “The digital economy has grown 2.5 times faster than global GDP over the previous 15 years, with estimates of the size of the digital economy ranging from 4.5% to 15.5% of world GDP.”
“The industries that … shape the experience of citizens’ everyday lives span hospitality and tourism, healthcare, retail, education, financial and professional services, and transportation,” it added. “Digital is changing the way these industries work.”
Benefits of digital transformation in finance
The digital transformation finance businesses are putting in place is helping to achieve new levels of efficiency, reducing operating costs in a challenging economy, while improving – rather than compromising – on service levels.
Some of the direct benefits of digital transformation in finance include:
- Automation of time-consuming repetitive processes
- Better detailed analysis of vast quantities of data
- Compliance with initiatives like Making Tax Digital
- Improved planning and decision-making organisation-wide
- Reduce workforce demand to cope with skills gaps
Digital transformation is a broad term and while the benefits are huge, they can vary substantially between different organisations. Venom IT’s accounting and finance sector expertise can help you to understand the value of digital transformation for you.
Why is the finance industry struggling with digital transformation?
The digital world changes fast. Just look at consumer spending. UK Finance reports that cash now accounts for just 15% of transactions. That’s about seven billion purchases per year, down by two thirds since 2012.
Nearly 60% of payments are made by credit or debit card, and most of these are contactless. The figures show that over a third of UK payments (37%) are made using contactless methods, either by card or using a mobile app like Apple Pay or Google Pay.
Adapting hardware and POS software to support emerging payment technologies can be daunting, and this is just one example of the new fintech developments seen over the past decade.
But with access to expert IT consulting like Venom IT’s finance team, you don’t need to be daunted by the road ahead.
How can an IT service help with digital transformation?
IT consultancies exist to deliver value for our clients. At Venom IT, we have developed a suite of IT services for small businesses that span everything you need to get started.
This includes round-the-clock support for cyber attacks and disaster recovery, remote backups to the cloud to protect your mission-critical data, and support with the software you use every day, such as Microsoft 365.
We believe that we are in the perfect position to support digital transformation in finance industry organisations, to ensure that you succeed in getting full value from your digital strategy.
The rise of digital transformation consultancy
We continue to see a rise in the digital transformation finance businesses are putting in place, as well as enquiries about digital transformation consultancy services to help support those strategies.
As a homegrown IT consultancy with over 15 years of experience behind us, Venom IT understand the challenges of embracing digital technologies in small businesses – and in large corporations.
But we believe in establishing a long-term relationship with our clients, so that when you ask us a question, we are able to give you not only the industry-standard response, but to tailor that response to the unique characteristics of your organisation.
In doing so, we can maximise the value of our digital transformation consultancy services for your business, while improving the outcomes of hardware, software and cyber security upgrades.
How does a finance or accountancy business get started?
We welcome all enquiries relating to digital transformation in the finance industry. Our friendly team is ready to discuss what you need, with no initial obligation – just a conversation to see how we can help.
From there, we can advise on whether you’re likely to need new hardware, including network infrastructure, storage and workstations, new software such as Microsoft 365, SAP Business One or Sage, and any initial cyber security recommendations.
This is about giving you safe, reliable and efficient IT infrastructure to power your business through its digital transformation. And as you continue to embrace this transformational change, we’ll be here to help you choose your next steps.
For more information, fill in our contact form and our team of IT experts will get in touch. Alternatively, call our sales team on 0330 202 0220.
