Skip to main content
Sorry, but nothing matched your search terms. Sorry, but nothing matched your search terms. Sorry, but nothing matched your search terms. Désolé, mais rien ne correspond à vos critères de recherche. Désolé, mais rien ne correspond à vos critères de recherche. Entschuldigung, wir haben nichts zu diesem Suchbegriff gefunden.
Sorry, but we cannot handle your search query now. Please, try again later! Sorry, but we cannot handle your search query now. Please, try again later! Sorry, but we cannot handle your search query now. Please, try again later! Désolé, mais nous ne pouvons pas traiter votre demande. Veuillez réessayer plus tard ! Désolé, mais nous ne pouvons pas traiter votre demande. Veuillez réessayer plus tard ! Entschuldigung, wir können Ihre Suchanfrage zurzeit nicht bearbeiten. Bitte versuchen Sie es später noch einmal.
Search suggestions

Trends and challenges of digital operational resilience for banks

As illustrated by the research findings in Expleo’s Digital Resilience: The New Heart of Operational Risk report, an unprecedented phase of operational recalibration is underway.
Scroll
Share on linkedin
Share on twitter
Share on facebook
Share on print

Since the onset of the pandemic, the ‘resilience imperative’ has been emphasised for the global business community, spurred by sustained periods of forced closure and COVID-induced operational wind-downs. The level of adjustment for enterprises will have varied greatly, and likely included migrating from physical-based architecture to cloud-based; bolstering online payments infrastructure and e-commerce capabilities; or revamping IT systems to enable seamless remote working arrangements.

None of these activities should be hastily executed, and must be viewed through the prism of Digital Operational Resilience (DOR). With growing appreciation at board level for the far-reaching benefits of enhanced resilience, we could well see the addition of a Chief Resilience Officer role to the traditional C-suite roster over the next 12 months. In this new regime, expect to see legacy processes being redefined by exciting deployments of A.I, M.L and Fintech solutions, setting enterprises on the optimised path to success in an increasingly regulatory-sensitive environment.

As illustrated by the research findings in Expleo’s Digital Resilience: The New Heart of Operational Risk report, an unprecedented phase of operational recalibration is underway. Let’s now explore some of the specific technology trends that are powering this wave of innovation.

Workers crossing the corridor

Expedited digital transformation timelines

At a high level, perhaps the most pronounced trend we’ve collectively seen is the dramatic acceleration of digital transformation initiatives across the industry spectrum. Adopting a ‘digital-first’ corporate mindset is now very much in vogue, and can manifest itself in many forms – from an overhaul of workplace practices, to increased automation and cross-party intelligence sharing. In a rapidly evolving landscape, organisations are feeling the need to become increasingly agile and adaptable, while ensuring any fast-paced innovation is managed with tact and falls within regulatory checkpoints.

Embedded finance

Another noteworthy trend gaining momentum is that of embedded finance, involving the retro-fitting or ‘embedding’ of financial services within existing operational frameworks, opening the door for non-finance companies to greatly expand their service portfolios. This trend is a perfect microcosm of the ‘value-add’ era, in which platforms are harnessing a decentralised network of service capabilities to improve the customer journey. Embedded payments is a great example of this trend in action, and if you’re reading this, you’ve undoubtedly interacted with this type of mechanism. Think of scenarios in which the payment method is retained ‘in-app’, without the need to exit or access external portals. So, instead of redirecting customers, you keep them in your catchment area and carry out the sale ‘in-house’.

Data-driven collaborations

Depending solely on siloed business data for the purposes of improving customer profiling capabilities is an antiquated strategy. With innovations in Privacy-Enhancing Technology (PET) such as Zero-Knowledge Proof (ZKP) cryptography, partner organisations, or even competitors can engage in data-driven collaborations to uncover new actionable insights on customers. This is happening more and more, and can be conducted in a regulatory-compliance setting. For instance, competing retailers can use ZKPs to identify overlapping customers, and use this intel to conduct hyper-targeted customer outreach, without incurring any regulatory reprimands. 

Growing prevalence of cyberattacks

At a time of heightened vigilance around data security, the growing prevalence of cyberattacks is a pressing concern for businesses across a range of industry verticals. Our report shows that 100% of firms with technologist board members have an enhanced focus on Digital Operational Resilience – perhaps recognising this higher level of risk regarding cyberattacks. However, the risk isn’t shared equally, as banks are actually three times more likely to be involved in a cyberattack than any other industry, and the incidence of cyberattacks has grown dramatically over the past two years. For all businesses, not just banks, developing a proactive defence strategy is essential, covering audits, addressing vulnerabilities, and rapidly re-testing to ensure new configurations are properly supported. The human capital required to carry out audits and system reviews of this nature can be substantial, a challenge that Machine Learning and A.I deployments can play a key role in resolving. 

DORA implementation ambiguity

When it comes to regulatory preparedness, perhaps the most difficult hurdle is framework uncertainty – in which fundamental compliance requirements remain undisclosed. In fact, Expleo’s report indicated that only 20% of firms recognised the Digital Operational Resilience Act (DORA), while only one company is looking to take direct action as a result. Once unveiled, the UK has committed to implement the legislation, but as it’s still going through the legislative process in Europe, the final outcome is still unknown. It is not implausible that there could be certain nuances around what UK based organisations need to do to achieve compliance. As if that wasn’t confusing enough, the Brexit backdrop further muddies the waters. While DORA is a European initiative, it was actually drafted originally by the FCA and the PRA. In its current iteration as a European initiative, there’s still widespread debate about what implications there are for organisations in the UK compared to their European counterparts. 

Download

Download whitepaper

Thank you.

Thank you for your interest in Expleo. We have received your enquiry and one of our consultants will get in touch with you as soon as possible.