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12. 11. 2020

Enabling the Transformation of the Financial Services and Banking Sector

As the backbone of the economy, the Financial Services and Banking sector in Canada has seen tremendous growth over the past decade. A large part of this growth can be attributed to the technological innovations that is rapidly changing the face of the industry in terms of interactions with customers, efficiency, security, and the breadth of the services financial institutions offer. This push for digitalization and ongoing innovation is expected to continue over the years, as organizations evolve to keep pace with regulatory changes and market trends.

Technological modernization has allowed financial institutions to collect, store, and analyze customer data to uncover robust insights to drive data-backed decisions, identify behavior patterns and prevent financial crimes, understand customer preferences, business profitability, and use these insights to improve their product mix and marketing initiatives.

Data lies at the heart of all business decisions in today’s financial sector, and since 2000, Adastra has been helping our financial clients with their data management and technology needs. Our in-depth expertise has enabled organizations to implement modern data architecture and agile systems that meet their business needs of discovering insights, enhancing their customer relationships, and delivering the best-in-class service, while maximizing profitability.

The needs of every financial organization vary with its size, business model, and scale of service, and Adastra’s experts can build and customize solutions based on each organization’s individual needs. In our 20+ year experience of supporting the financial services and banking sector, Adastra has worked closely with our clients to understand their needs, challenges, and objectives, and our solutions reflect not only the current realities, but also our predictions on the future of the industry.

How Adastra Transforms Financial Institutions

As a leader in the Data and Technology space, Adastra has deep technical expertise and has delivered end-to-end enterprise-grade solutions for financial services and banking clients of all sizes. Our teams serve 15+ key clients in the financial services industry, and our scalable, stable, secure, and high-performing solutions have allowed them to unlock new opportunities, achieve their business objectives, and truly embrace the value offered by digital transformation.

Our data-driven approach ensures that your organization has a single view of your data, encompassing all lines of businesses, and that your data is accurate, complete, and accessible. Adastra helps you put data at the forefront of your strategy, by leveraging analytics to glean insights and inform decisions that will empower your customers and improve overall business performance.

We care about your customers, and our solutions will help you leverage your data to create unique, tailored customer experiences, that will keep your customers engaged and loyal. Adastra’s experts can guide you on the best technologies for your organization to capture, ingest, analyze, curate, and leverage your data, to ensure business stability and growth. Adastra offers technologies and solutions that cater to your business needs and are the best fit for your organization, keeping in mind your goals and strategic objectives.

Our Solutions for the Financial Services and Banking Sector

Our breadth of solutions is ever-evolving, and we pride ourselves on our ears-to-the-ground approach that allows us to pre-empt approaching challenges, so we can devise solutions that keep our clients ahead of the curve.

Broadly, we categorize our solutions into the below three categories:

Regulatory Compliance & Reporting

Adastra has extensive experience in supporting financial sector clients with regulatory compliance and reporting. Our experts stay abreast of upcoming global and Canadian regulatory frameworks, and design custom solutions for our clients. Our team also helps clients interpret regulatory requirements and assess their technology gap before developing a solution architecture.

For instance, for the upcoming Final Set of the Basel III reforms, also known as the Basel IV reforms, Adastra offers solutions for Global & Domestic Systemically Important Banks, as well as Small & Medium Sized Banks based on their needs. The Basel IV reforms are aimed at reducing variability of risk-weighted assets (RWAs) reported by banks and introduce revised standardized approaches for the calculation of capital, risk coverage, leverage, and liquidity risk calculations. The implementation of the Basel IV framework will require banks to significantly overhaul their IT infrastructure, data, and reporting systems. IT architectures will need to be more powerful to support parallel calculation of standardized and internal approaches and handle immense data volumes, and the massive expansion in reporting requirements will make automation essential. Adastra can support banks with end-to-end implementation of the Basel IV reforms, and build a complete solution architecture with pre-built calculation and reporting engines. Our solution also includes in-built data quality and governance workflows to ensure that your organization’s data and reports are trusted, error-free, and fit for analytics.

Payments Modernization is another global regulatory initiative that will impact the Canadian industry. The implementation of this regulatory framework relies on adoption of technology to enable frictionless, seamless transactions, and advanced analytics. While the degree of advancement adopted by banks is at their discretion, Payments Modernization could allow banks to not only meet regulatory requirements, but also stand out from the competition with the adoption of solutions like multi-channel AI-based Fraud Detection, Intelligent Process Automation, and flexible payment channels and options. Adastra can build customized solutions to help financial institutions derive the maximum value from their new data and implement Payments Modernization in a smooth, timely manner. Based on the organization’s requirements, Adastra can design and deploy specific solutions, such as those for real-time fraud and money-laundering analytics, to help banks lower their business risks and improve process efficiency.

Financial institutions also need to comply with the Proceeds of Crime/Money Laundering and Terrorist Financing (PCMLTF) regulation. Adastra has extensive experience in building and implementing AI-based solutions for fraud and money laundering detection and prevention. Our common analytics and reporting solutions encompass all banking verticals, including payments, mutual funds, deposit products, lending, insurance, and more. Adastra’s holistic solutions enable banks to keep track of customer activity right from account opening (KYC and enhanced due diligence), through the customer lifetime (transaction monitoring, investigation and case management), until the time an account is closed (with appropriate regulatory reporting and checks). Our solutions ensure diligent pre-processing, risk evaluation, and record-keeping, so that suspicious transactions can be flagged and reported, and the risk to the financial institution can be minimized.

Adastra can also design and deploy solutions for the implementation of Open Banking and other future regulatory requirements. Our experts can develop solutions that will help you consolidate and leverage your data to provide detailed insights into your organizational performance and for enterprise reporting.

Transforming Customer Experience

One of the key drivers of digital transformation in the financial sector is the need to continually optimize and improve customer experience. Adastra offers a wide array of solutions for banks to modernize and enhance their customer journey, in line with evolving customer expectations and market dynamics.

Traditionally, most financial institutions have relied on manual processes and in-person engagement for customer onboarding, but with customer interaction moving towards digital platforms, one key solution organizations are looking for is digital customer onboarding. Adastra provides a dedicated service for banks to design, develop, deploy, and continually optimize a high-converting, fully compliant digital onboarding process. Our solutions incorporate capabilities for KYC, solvency, and anti-fraud detection, and can be equipped with KPI-tracking dashboards based on each organization’s unique needs.

As part of their digital transformation journey, banks are seeking ways of expanding their digital footprint and automating previously manual processes to increase operational efficiency and reduce customer wait times. Some of our solutions include AI-powered call centre automation, chatbot-based product sales solutions. Innovation can play a huge role in brand recall and customer retention, and Adastra can support organizations in creating virtual-reality based virtual branches where their customers can learn about new products, sign up for services, and fulfil all of their banking needs without leaving the comfort of their homes. We can also custom-develop solutions for specific needs, such as recognition of branch traffic, using advanced analytics, for a more holistic picture of customer engagement.

Digital Transformation of the Back office

Back-office activities, including document processing, customer segmentation, and credit decisioning, take up a significant percentage of time and resources in the financial services sector. While most organizations are focused on transforming customer engagement and experience, delays caused by the lengthy and time-consuming back-office processes often lead to customer dissatisfaction.

Adastra recognizes the criticality of these processes both as part of the due process, as well as in ensuring that the organization makes the best financial decisions. Keeping this in mind, our experts have developed solutions to automate and enhance the efficiency of several back-office processes that have a profound effect on the overall customer experience. For instance, Adastra’s experts have developed automated document processing solutions that can drastically reduce the time and manual intervention needed for reviewing customer paperwork. Adastra also offers solutions for data-driven customer segmentation that can help organizations develop and deliver targeted marketing and sales campaigns and improve returns on marketing investment. We also have extensive expertise in designing customized solutions for credit risk management and card analytics, which allow financial institutions to provide near-real-time credit decisioning based on advanced analytics, allocate appropriate levels of credit, track customer behavior for patterns for fraudulent/suspicious activities, and analyze customer data to make better product and marketing decisions.

Technological advancement has opened a plethora of opportunities for the financial services and banking sector, and Adastra continues to support clients in leveraging technology to achieve results. With regulations and customer expectations necessitating the adoption of technology and analysis of data, financial institutions can no longer delay their digital transformation efforts. Adastra offers the expertise, experience, and the skills needed to support financial institutions in aligning their data management and technological needs to their business strategy.

Want to learn more about how Adastra can help transform your business? Schedule a free consultation with our experts.

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