IIF and Deloitte Co-authors of the latest report come together to share the main insights and implications for the future of finance. Guests Michael Tang, Partner and Head of Global Digital Transformation for Financial Services; and Malte Borkenhagen, Business Strategy & Innovation Leader outline the technology building blocks for digital transformation, new partnership models, and how regulators are adapting to changes in the financial services industry.
The discussion goes on to explore how these developments are blurring lines between different players and shifting traditional roles between financial and technology firms as well as what we heard from the leaders we interviewed about how this is shaping their decisions about partnerships and technology while developing strategies in a complex new ecosystem. The public sector is also seeking to advance innovation while they grapple with modernizing the rulebook and finding the expertise to understand new systems and risks and this dynamic was another focus of the discussion.
Cloud stands out in the report as an essential technology tool to help financial services catch up with the digital economy and rapidly transform service offerings; however, it is also making financial institutions dependent on hyper scale tech entities who are increasingly taking over the customer facing role with embedded banking and payments activities disappearing into the end consumer service rather than standing distinct. At the same time, regulators have come to appreciate the value of cloud for digital transformation but have an eye on concentration risks and competition concerns.
This episode distills the main messages of the report that were gathered directly from more than 150 leaders—who are responsible for digital transformation at banks, insurers, technology firms, cloud service providers, public sector regulators and supervisors—to identify how the promise of digital transformation can be realized.