The financial services sector faces significant challenges as new entrants, unrestricted by legacy systems, enter the market and change the landscape. While financial institutions struggle to keep up, financial-technology or “FinTech” start-ups are on the rise. They are changing the way in which consumers save, borrow, send money abroad and make payments. Rather than coming from one new entrant defining a market (such as Uber in the taxi market), this disruption has come from hundreds of players all along the value chain. These entrants are all concentrating on providing one service incredibly well and thereby outperforming the incumbents.
For example, Naspers, one of the largest Internet and media companies in the world has recently launched PayU, an online payment service provider that supports transactions from over 250 online methods. DevOpsGroup has worked with PayU to establish itself as one of the leading players in the sector.
Traditional financial institutions are reacting by making their services as seamless as possible for customers who expect an increasingly personalised and relevant experience across all channels, including mobile and social engagement. For example, Barclays now offers bPay – a wristband that customers can use for contactless payments by scanning it against one of 300,000 UK terminals. However, contactless payments is a highly competitive area with technology giants Apple and Paypal also moving into the space.
Both Fintech start-ups and established financial services businesses are reacting to the four digital disruptors of Social, Mobile, Analytics and Cloud, by using them to increase the capacity, efficiency and scalability of their IT capability. For an industry that turns over hundreds of billions of pounds a year, the potential for even marginal gains are huge, but Digital Transformation promises even more.
However, Digital Transformation can only be achieved when it is underpinned by a solid platform to deliver and support these new applications, services and technologies. This is traditionally a major challenge for large financial services organisations because they do not have the process, technology or culture to facilitate significant IT change.
DevOpsGroup works in the financial services sector to assist companies such as M&G, Coller Capital and FIS to digitally transform by adopting DevOps principles, practices and methodologies across software development and operational teams. This approach allows financial services organisations to rapidly deliver new services to customers and gain competitive advantage in their relative markets.