Modernize financial services to mitigate challenges in risk

Risk comes in many forms. And companies in the financial services sector face it to a higher degree—and on more fronts—than the average business, whether they’re making investment decisions, complying with regulations, thwarting cyberattacks, or preventing fraud. With the growing complexity of customer data and interactions, managing risk is a constantly evolving challenge.

While risk and business go hand in hand, today’s technologies make it easier than ever to navigate uncertainties. Businesses are using the latest in cloud technology, AI, and analytics to modernize their infrastructure and stay competitive. By streamlining operations, they’re also lowering their total cost of ownership. Microsoft and Microsoft partners are helping companies make the most of these new technologies, working together toward innovative solutions to manage risk in compliance, employee conduct, fraud prevention, and other areas.

Meeting complex reporting requirements head-on

Modern financial services companies face risk from more compliance and regulatory requirements than ever. In order to meet these requirements, teams are managing increased workloads while looking for ways to reduce spending. That’s one area where cloud technology can be particularly important.

Secure cloud solutions can help lower costs while simplifying the compliance process. By moving operations from a capital expenditure model to an operational expenditure model, businesses can reduce their total cost of ownership for technology. Leaning on the cloud offers additional benefits as well, such as increased scalability, Zero Trust data privacy guardrails, and up-to-the-minute access to AI.

AI is already a powerful tool in financial services, but keeping pace with changing regulations and technology can be daunting. That’s where teaming up with a partner can help. Neudesic, a 2023 Microsoft Partner of the Year, is transforming the financial sector by applying the power of AI to risk management in IT operations. Using responsible AI and its own Intelligent Ops program, Neudesic helps businesses identify and automatically remediate system threats and vulnerabilities to avoid noncompliance or a data breach. A ChatGPT-like interface simplifies compliance audits as well.

Managing employee conduct and communication risks

Financial services teams also bear the responsibility of protecting customers—and customer data—from the risk of possible employee misconduct. But manually monitoring all employee communications across all communication channels for signs of market manipulation and client abuse places a large burden on analysts.

New innovations in technology can help lighten that load. With the help of AI, analysts can make faster and more accurate decisions regarding employee risk. Companies can take tools like risk visualization and clarified decisioning and use them to detect and assess employee conduct risks before they become a problem.

NICE Actimize is a Microsoft partner working with businesses to reduce financial crime. Its Compliancentral, an innovative end-to-end compliance recording and trade surveillance solution, uses the latest in AI technology and analytics to get the job done. “With AI-powered case management,” explains Chris DeNigris, Director of Product Marketing and Compliance at NICE, “you get a single, comprehensive view of employee risk that speeds up investigations and increases efficiency.”

Navigating fraud risk with enterprise decision making

Embedded services for on-the-go access help the financial sector offer clients an individualized experience. But these services come at the risk of keeping customer data safe while still accessible across the organization.

Separating and limiting access to data can offer some protection, but it’s impractical. Employees need accurate and timely information to provide the best customer experience. Wealth managers also rely on precise information to assess matters like how well a particular product has performed or whether a service still brings value to the company.

Decisions that take into account the whole picture of a customer carry less risk. SAS is an analytics and solutions business helping companies move toward an architecture that can deliver differentiated experiences to their customers. “Holistic decisions across risk, fraud, and marketing can set one organization apart from the next,” explains Terisa Roberts, Global Solution Lead for Risk Modeling and Decisioning at SAS. “This concept not only enhances the customer experience, but also rationalizes complex IT infrastructure, reduces costs, and provides the agility required to address new risks and competitive pressures.”

Maximizing your company’s potential while minimizing risk

Whether you’re managing risk in compliance, employee conduct, or fraud prevention, modernizing your data infrastructure with the latest in AI and analytics can help cut costs and increase efficiency to keep you competitive. There’s no time like the present to take your business to the next level.

Learn more from Microsoft partners Neudesic, NICE, and SAS in the Modernizing Risk Management for Financial Institutions webinar series.