Millennials, Data Protection and Automation

Saragossa

Study shows what millennials really want from financial institutions

A recent survey, (commissioned by financial technology and marketing provider Kasasa) revealed that 85% of those aged between 24-38 would prefer it if they could conduct all of their financial business through one institution.

So-called ‘millennials’ are apparently more attracted to financial services institutions that offer banking, wealth management, retirement services, credit cards and loans all in one place. Providing the ability to manage all of these different elements via one secure mobile or online platform can set institutions up in good standing to attract the lion’s share of this young and increasingly wealthy demographic.

Private banks, wealth managers and other older financial entities are under increasing pressure to modernise their services for the digital age. A recent report by Temenos showed that the number of wealth management account openings on mobile devices has almost doubled in the last year. In response to this, more and more firms are implementing features like instant messaging, real-time file sharing and/or robo-advisors. It seems as good as guaranteed that this will only continue as millennials start to take up a higher percentage of the wealth market.

Regulators call for harsher punishments for failed data safeguarding

US Senator Elizabeth Warren has put forward the Corporate Executive Accountability Act, which will enforce far stricter consequences and ‘establish criminal liability’ for CEOs whose companies suffer a data breach.

This move comes as a response to the major data breaches that have made headlines in recent years. Facebook, Equifax and Marriott, to name just a few, have all fallen foul of data privacy best practices, and there is an increasing sentiment among the public and regulators alike that more needs to be done to combat this. By making corporate heads directly responsible for any data-related missteps, one would hope that corporations would start to treat data privacy with more of the strict consideration that it deserves, and would invest more in preventing easily-preventable leaks.

Hiring dedicated Cyber Security personnel is a good start, but it’s just that – a start. If we are to continue trusting massive companies with our personal data – and it would appear that this isn’t much of a choice any more – then it is imperative that those companies take the proper steps to ensure that data is safe. And if the only way to achieve this is by targeting business leaders, then that would appear to be a small price to pay.

Machine Learning grows more prominent in financial services

report by Refinitiv shows that more and more financial institutions are recognising the value of implementing some sort of machine learning strategy. In particular, machine learning is being employed by firms to help with risk avoidance and performance analysis.

The benefits of machine learning for technological industries in general, and finance in particular, have been well understood for some time. The process automation enabled by machine learning can greatly cut down on operational costs, while increasing productivity and leading to increased revenues. Using automation to minimise the human error element can also make it easier for companies to meet security requirements and to stay compliant with regulators.

In the past, only the very wealthiest hedge funds would have been able to afford machine learning teams, but new technologies such as cloud computing have started making machine learning accessible to smaller-scale companies as well. While investing in machine learning focused Research and Development may be costly, early figures indicate that it may in fact be more expensive to ignore this growing trend.

Saragossa are a talent provider specialising in the Financial Technology, Financial Operations and Data Science sectors. Our role is to match clients with high calibre candidates. Our work encompasses filling temporary contracts along with building permanent teams and resourcing projects. To find out more, please contact enquiries@saragossa.co.uk or call 020 7871 3666.