To be fit for the modern digital world and to meet the demands of increasingly tech-savvy customers, financial service providers need to develop new business models, activate new revenue streams beyond the standard set of financial services, and reduce costs. In simple terms, they need to gain the agility of cloud-native organizations.
Digitalization is accelerating, but financial institutions are also wary of taking risks. They want – and are compelled by regulations worldwide – to have the highest level of security and reliability in all of their digital processes.
Balancing risk and potential
To balance the potential for digitalization and the need for risk mitigation, they need to gain control over the digital infrastructure that connects to their digital ecosystem – from cloud and connectivity partners through to financial services partners, vertical industry partners, and customers. They need to connect their network directly to the networks of their many partners to exchange data in a fast, efficient, flexible, and secure way. This is what is known as interconnection. And, as part of their journey towards transformation, financial institutions need to develop an interconnection strategy.
An interconnection strategy will provide a framework for the ways in which companies wish to control connectivity of digital resources. And with the right interconnection strategy, the challenges of digitalization can also be overcome for the finance sector, unleashing a new era of interconnection enabled innovation.