SCC have a long heritage in dealing with some of the largest and most highly recognised financial services and insurance organisations across the globe, specialising in providing IT solutions to enhance efficiency, security and innovation.
In the financial services and insurance vertical, cyber challenges are continually growing, with data governance issues and breaches plaguing most organisations. Navigating cyber regulations is increasingly complex, especially with the UK's second-generation regulations following a cross-cutting approach. Cloud and edge computing, along with applied AI, offer substantial benefits but also introduce significant cyber risks that demand robust mitigation.
External factors like geopolitical conflicts, technological advancements in financial institution internal systems and the use of AI in financial crime are driving the adoption of new compliance technologies. Legacy infrastructure remains a significant challenge in the financial services and insurance sector, impeding progress and increasing risks and costs. Cloud adoption is accelerating among both established institutions and newer FinTechs, signalling a shift away from outdated systems.
Financial institutions recognise AI and open banking as tools for improving products and business operations, leading to mass adoption in the next two years. While AI introduces disruptions, it also drives innovation, helping traditional institutions differentiate their offerings and compete with digital-native firms, ultimately enhancing customer engagement and competitive posture.
Future winners in the financial services industry will be those who can envision and execute business initiatives faster than their competitors and at SCC, our ethos is to put the customer at the heart of what we do. New technologies constantly appear and evolve and our position of independence ensures investment decisions are only made to adopt new ideas and technologies when they support our customers remaining competitive.
According to a Bank of England survey, cybersecurity is the highest risk, with the global average cost of a breach reaching USD 4.45 million in 2023. Consequently, 51% of firms plan to bolster security investments, focusing on incident response planning, employee training and threat detection tools.
Despite the positive momentum toward adopting AI and InsurTech, traditional players struggle with data quality and legacy issues. While some firms opt to upgrade rather than replace legacy core systems, investment is increasingly directed towards remediating security vulnerabilities and enhancing threat detection with AI.
AI adoption in financial services continue to accelerate, especially in predictive analytics and machine learning, with many institutions deploying predictive AI systems across various functions. However, challenges persist, including transparency, fairness and data privacy concerns.
