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EY launches business transformation platform for FS industry

Source: EY

EY announces that it has expanded its technology ecosystem with the launch of business transformation platform, EY Nexus, which is optimized for financial services and designed for rapid deployment of new products and solutions.

The launch of EY Nexus marks an important milestone, with the EY organization recently announcing combined global revenues of US$45.4b for the financial year ending June 2022. It comes as the organization continues its investment in technology, with EY Nexus playing a crucial role in solving complex client issues at speed.

Demand for systems and apps that adhere to modern architecture and utilize micro services is being propelled by stagnant progress owing to cumbersome legacy systems, increasing regulatory pressure and shifting customer expectations.

This demand is causing an operational impasse for many organizations as they juggle competing priorities.

With technologists based across the globe in eight regional technology hubs, EY Nexus is part of a mature ecosystem of more than 60 products and 55 industry alliances serving 180 countries. The launch of EY Nexus paves the way for banks, insurers, and wealth and asset managers to build for growth, and deliver outcomes at speed, integrating with existing legacy systems tech using provider-agnostic services.

Fueled by extensive knowledge of the financial services industry and expansive technology capabilities from across the EY organization, EY Nexus is now live in six countries, already powering over 40 financial services companies, and representing the growing desire for banks, insurers and wealth and asset managers to self-disrupt in an age where data talks and radical change is emerging outside of the industry.

A recent EY Tapestry network report highlighted that 70% of investments in data over the past decade are not reusable and do not address broader transformational capabilities.

David Connolly, EY Global Insurance Technology Leader, says:
“Disruption from FinTech and InsurTech challengers is not the primary threat to incumbents — while they remain firmly on the radar, the emerging risk is posed by service providers who are acknowledging the power their data wields. With thousands of data points at their disposal in real-time, they have realized the art of what is possible, and this is giving them a distinct opportunity and competitive advantage.

The industry is at an inflection point, with embedded finance leading the charge. EY Nexus is a solution that can tuck into every corner of the industry, with the ability to build a new bank or insurance company outside of an organization’s legacy systems at incredible speed. What’s more, this can be achieved with existing systems, providing frictionless integration without disrupting the operating model.

These are revolutionary feats, and EY teams are beating the drum for clients who are recognizing that the sheer volume of data collected from every touchpoint of our lives is reshaping the way we do business.”

Primed for high regulated industries

In addition to the regional technology hubs, EY Nexus is supported by 14 Global Delivery Centers for highly regulated industries, and five cloud innovation labs — two vital components in developing modular and scalable solutions for players in financial services.

With 1 trillion lines of financial data analyzed annually by EY technology products, this represents the marked evolution of data and how it can be used to iterate and expand products, services, and experiences.

While the use of data sounds attractive, analyzing and activating it poses a significant challenge for organizations with burdensome tech stacks, multiple applications, varied needs and restricted access to capital. While incumbent banks still maintain their edge on their market, neobanks are gaining ground with wins across generations. The EY 2021 Next Wave Global Consumer Banking Survey highlighted that 27% of all global consumers have a relationship with a neobank, with the 25-34 age group leading the way.

David Deane, EY Americas Consulting Digital Leader, says:
“Financial services organizations are grappling with varied strategic priorities — their net zero targets; increasing customer expectations, particularly after the global pandemic; how they respond to new entrants in the market; and emerging technology.

Responding to the immediate needs of the customer is not enough in today’s rapidly changing environment — institutions must be prepared to iterate and experiment, to get under the skin of their customer and have a firm grasp of what is disrupting their industry.

The risk is real — failing to address the future could be commercially calamitous; customers — and the next generation of tech-savvy talent covet a frictionless experience that integrates seamlessly into their lives. It should be as intuitive, anticipating every move. As the trust gap between consumers and financial institutions widens, banks, insurers and wealth and asset managers have a vital role to play, and this starts with human-first technology.”

Data is the future

Wealth and asset managers are equally challenged by big data, with more harnessing technology to generate advice. A recent EY report cited that 57% of clients say digital tools have improved investment decision-making.

Sandeep Kumar, EY Americas Wealth and Asset Management Technology Leader, says:

“Legacy technology slows everything down — product development, innovation, decision-making, bold new services — the list is endless. Clients expect an exceptional experience in this age of immediacy and instant gratification; they want seamless end-to-end services, and if you cannot provide this, someone else will.

Today, financial advisors spend 60-70% of their time entering data into systems, and most of the time it is the same data being added into multiple systems. Technology needs to change this equation and give advisors more time to spend with their clients and grow their business.” 

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