Finance Monthly May 2019 Edition

ARE YOU ADAPTING TO THE FINANCIAL SECTOR’S NEW CHALLENGES? In his scientific assessment of competing species, Charles Darwin concluded that it wasn’t necessarily the strongest that survived, but the most adaptable. In the financial world, an ability to respond to changing circumstances has always been a vital attribute. But today it is arguably more important than ever, as the industry grapples with challenges from a number of angles. here are new competitive threats. Blockchain and smart contracts are changing the way people procure financial services. At the same time, client expectations are continually rising, a process accelerated by the arrival of new digitally-orientated competitors. Recruitment is also a challenge, as skills shortages take their toll on the ability of businesses to grow and innovate. Then there are compliance obligations, which are getting tougher. GDPR and PSD2 will continue to have major effects on financial services, which spend an estimated £5 billion each year on compliance. Cybersecurity is another pressing concern. Financial services are a prime target for hackers, with large banks of sensitive and lucrative data that can be stolen and sold on. All of this is happening against a backdrop of economic uncertainty, driven by issues including Brexit, which are forcing financial firms to reconsider where and how they work. In response, forward-looking firms are reviewing and reshaping established working practices and structures, assisted by technologies that allow for greater flexibility, responsiveness, efficiency and service levels. T 28 www.finance-monthly.com ASK THE EXPERT - CHALLENGES FACING THE FINANCIAL SECTOR