The IT Systems of Financial Services Companies

Financial services

A financial services company may buy and sell commodities on behalf of clients. For example, a stockbroker may buy a commodity at a low price and then try to sell it at a higher one. The financial services industry also provides advice to the general public. The next section of this article will focus on the IT systems of financial services companies. These systems are critical to the business’s success. Here are the key components of financial services.

Business model

As consumers increasingly move away from traditional banking, the Business Model of Financial Services is evolving to provide new, more innovative options for them to manage their finances. The financial services industry is one of many industries that are experiencing a digital revolution. These innovations are creating new business opportunities, while also reshaping the traditional industry. As consumers’ lives become increasingly mobile and data-driven, financial institutions need to keep up with these trends to remain relevant.


The financial services industry is highly fragmented and lacked integration and overlap. It comprises various sectors such as credit, insurance, and savings, as well as non-bank financial services. The strengths and weaknesses of each of these sectors depend on their respective screening, monitoring, and transaction costs. These core elements are discussed below:

IT systems

With the rapid adoption of cloud technology and the ubiquity of connected mobile devices, financial services organizations are faced with a range of new requirements. Legacy systems built decades ago are no longer suited to today’s dynamic demands. Moreover, many of the core on-premises systems are still reliant on point-to-point integrations with key third-party software packages, which requires custom coding. As a result, companies must find a way to make this data available to customers anywhere, anytime.


Regulators should consider how financial services affect the real economy in addition to their own financial interests. In particular, they should consider how they support economic growth by providing credit, capital, and insurance to firms in the real economy. Treasury should reject calls to make the growth objective the primary objective, as this would force regulators to trade off competitiveness and resilience, and undermine their ability to perform their core functions. There are many challenges in the regulatory process.


The cost of providing financial services has long been a controversial topic. Its effects on the economy have largely been overlooked. The financial sector accounts for a large portion of global GDP. However, the cost of providing these services is disproportionately high in developing countries. The informal sector represents eighty-eight percent of urban workers. Banks tend to view these workers as high-risk clients because they lack regular income and collateral, and they are more likely to make late payments and insurance claims. As a result, the cost of providing financial services to informal workers tends to be higher than for traditional sectors, and contract terms are shorter than for workers in developed economies.


The market for financial services is highly competitive and intense rivalry can lower prices and reduce profitability. Companies in this industry often partner with other companies to gain market share. Mineral & Financial Investments Limited is an example of a company in this industry that collaborates with its competitors to increase market share. It also uses its technology to improve its customer experience. This article provides an overview of the competitive landscape for the financial services industry. To gain market share, financial services companies should understand how competitors in this industry differ from one another.

Exit mobile version