Digital transformation crucial for financial sector

The financial services industry could greatly benefit from implementing a digital transformation strategy, according to Kevin Tate, Mainframe Portfolio Director at Jumar. This assertion comes in the wake of acknowledging that the employment rate for talent aged 16-64 was down by 76. Jumar seeks to promote awareness among businesses on the need for staff satisfaction within the job sphere.

Outdated technology can seriously inhibit a business, making essential modernisation a key facet to consider. Projections show that approximately 74% of manufacturers are constrained due to disconnected data, an issue that is not unique to this industry. Shifting from legacy systems to undertaking a comprehensive business digital transformation is suggested to drastically enhance efficiency, data security, and business growth.

Kevin Tate explained: "Your business will give you signs when it is in the right position to grow successfully, but recognising when your technology is holding you back is just as vital. Letting go of your legacy systems can be difficult when they've served your business well so far, but knowing when they are starting to cause inefficiencies is important for a seamless growth process based on technology suited to your business needs."

Recognising when your business is ready for a modernisation approach can be difficult, but telltale signs often include a shift in business goals and the outdatedness of current technology. Systems that were once suitable may not be able to meet the speed, demands or scale of an evolving business. Efficiency is key and when a system no longer assists in achieving business goals, it may be time for changes to be made.

Kevin elaborated: "Legacy systems might not be the most appropriate for your business anymore as new technologies emerge which offer a more efficient method of producing the same, or better, results. If you neglect this technology, you might be giving your competitors an advantage which could be costly for your business."

Furthermore, increased security risks are a clear indication that a modernisation approach may be necessary. With a cyberattack occurring every 39 seconds, businesses risk substantial losses and compromised data which may lead to fines and damage to reputation. Kevin stressed the importance of investing in digital transformation for the security of your business: "Systems which no longer receive updates can become a target to cyberattacks and act as a vulnerability within your technology infrastructure. Ensuring that you're protecting your assets and data includes modernising your technology and systems to prevent malware, data corruption, and other forms of malicious attack."

When considering a technological shift, planning, stakeholder preparation and understanding of interim technologies are essential. Modernising systems requires downtime which needs to be planned in advance to ensure minimal disruption. Corporations should also consider adopting an evergreen software approach to offer flexibility, scalability and to avoid future necessary modernisations.

Modernisation is a necessity, especially if current technology confines your business's potential or presents security risks. Careful consideration of current system usage, their appropriateness to the business and the evolution of business goals since the last implementation of technology are all important factors to consider during a digital transformation journey.