The impact of technology on the Banking, financial services, and insurance industry (BFSI industry)

Digital transformation is changing the way consumers interact and do business on a day-to-day basis, and advancements in banking technology are continuing to influence the future of financial services around the world. Increasing demand for an uninterrupted digital banking experience is revolutionizing how the BFSI industry operates. 

From fintech and insurtech to mobile banking and neobank startups, technology impacts every aspect of the Banking, financial services, and insurance industry; and, the influence of technology will continue to launch banking into an even more digitized future.

The future of banks strictly depends on their ability to leverage the latest innovations and thus respond to consumers’ needs and behaviors. In exchange, banks will be rewarded with loyalty, trust, and referrals.

Key Characteristics of Financial Services and Products
Key Characteristics of Financial Services and Products in Digital Banking

What’s driving the massive growth of DevOps in the BFSI sector?

To support today’s digital age, many financial services companies are modernizing their infrastructure and processes.

Some of the challenges they face are different legacy systems, complying with governance requirements and regulations, and the need for better security. These concerns make software lifecycles in the financial services sector a slow and complex process.

However, the financial services sector is leading the transformation when it comes to adopting the latest technologies and modern software delivery practices such as DevOps, continuous integration, and continuous delivery (CI/CD), Cloud Technology adoption, Infrastructure as code, etc.

In DevOps methodology, the development and operations teams work together throughout the entire software development lifecycle, starting from design to development, production operations, and ongoing support.

The role of DevOps in the financial services industry is to bring value to the financial market more safely and efficiently. DevOps allows financial services providers to improve the quality and speed of application releases without compromising compliance, security, and governance strategies. Moreover, the DevOps approach is helpful for the adoption of various innovative technologies such as blockchain for example. 

Technological progress and more precisely DevOps innovation are key in banking and fintech software development and will continue to drive disruptive business models in financial services. In this blog post, we will go through 5 key DevOps technologies that help banks provide future-oriented digital banking services that are seamless, innovative, and loved by users.

3 DevOps technology innovations shaping the future of digital banking

Five key DevOps technologies will drive business model reinventions while shaping the competitive landscape of the financial industry in the near future. 

1. Cloud Adoption

Traditional banks had their systems and processes built using legacy technology which presented an advantage. However, the emergence of cloud-based technology with its scalable, and agile approaches to developing platforms presents cutting-edge benefits. 

Cloud computing allows financial institutions to store data and applications, and use scalable computing resources on-demand.

Leading public cloud providers (Microsoft Azure, Amazon Web Services (AWS) and Google Cloud Platform) offer a range of services allowing to build and scale innovations quickly.

Here are some of the benefits of cloud adoption for the financial services industry:

  • Cost-efficiency as financial institutions invest big in software and hardware infrastructure
  • The efficiency of the software delivery lifecycle and launches to help match client demand and technological trends faster
  • Insights into customer behavior via powerful data analytics and machine learning technology integrated 

2. Automation

DevOps methodology fosters automation in software development and infrastructure operations across multiple processes. Automation further promotes speed, greater accuracy, consistency, and reliability in banking software delivery. This covers everything right from design, deploying & monitoring. From software updates, testing environments setup, and software delivery pipelines to servers monitoring and logging. 

3. DevSecOps: inject security into the delivery pipelines

The personal and financial data stored by financial services companies makes them a primary target for cyber attacks.

Thus, financial services institutions face constant pressure to strengthen their cyber security and speed up their software releases. Moreover, financial services are one of the most regulated sectors worldwide. These are just a few of the reasons why implementing DevSecOps is imperative for the finance sector. 

DevSecOps is the end-to-end collaboration of development, security, and operations teams throughout the software development lifecycle. It also comprises the automation of their tasks, resulting in the frequent and secure release of the software that empowers digital business.

Key DevSecOps benefits for banks and financial services providers include:

  • Protection of the software delivery lifecycle from end to end
  • Improved quality, reliability, and performance of digital services

DevOps outsourcing services for Banking, Fintech, and digital banking enterprises?

As a DevOps services provider company, ITGix helps financial organizations reap all the benefits of the DevOps methodology. Our expert team brings unmatched technical expertise across a range of tools and services that provide real value to your business.

ITGix team helps embed security at all stages of the delivery pipeline. We help reduce costs by offering better collaboration between teams and accelerating time-to-market. Moreover, we help you identify the right technology stack and tools that will best align with your governance, security, risk & compliance requirements.

You may review our expertise and recommended best practices for the Financial Services industry here.

Check out our portfolio!

Read our expert use case on the setup of a multi-environment Payment Card Industry Data Security Standard (PCI DSS) compliant AWS infrastructure for proxying financial transactions here. Our experienced AWS team built a highly available, scalable, and secured environment following the latest security and operational best practices!

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