The financial advisory landscape is standing at the precipice of a technology-driven revolution. In a world where applications cater to every need and people spend a significant portion of their day on their digital devices, client expectations regarding technology have surged. Simultaneously, the sophistication of cyber threats has increased, presenting a significant challenge. Financial advisors and the broader financial services sector face the intricate task of navigating this change and adapting to the increasing customer’s requirements and expectations. This infographic delves into the top challenges faced by financial advisors and explores how they can evolve to not only survive but thrive in this era of technological transformation with the smart help of managed services.
Challenge 1: Embracing a Mobile Workforce and BYOD Policy
The advent of remote work and the prevalence of mobile devices have led to the rise of Bring Your Own Device (BYOD) policies. However, ensuring the security of organizational data and resources in this scenario remains a significant challenge. Recent statistics highlight the extent of this challenge:
- 82% of companies permit employees to use personal devices for work.
- 30% of organizations lack adequate safeguards against malware for their BYOD.
- 62% of cybersecurity professionals identify data leakage as a primary concern linked to BYOD.
To mitigate this challenge, financial advisors need to prioritize robust Mobile Device Management (MDM) solutions, total desktop security, and comprehensive endpoint security. Working closely with Managed Service Providers (MSPs) can provide the expertise and technological infrastructure necessary to secure a mobile workforce effectively.
Challenge 2: Navigating Internal Technological Challenges
Technology is a powerful enabler, but it also poses pervasive and potentially high-impact risks. Cyber threats in the form of data theft, compromised accounts, or disrupted systems pose significant concerns. Many financial advisory firms are now considering outsourcing their technology needs to reliable managed service providers (MSPs) to mitigate these risks. Key statistics pertaining to this challenge are:
- 59% of small businesses struggle with implementing and rolling out new technologies.
- 33% of companies utilizing an MSP report significant cost savings in annual IT expenditures.
- 65% of companies cite the reduction of security risks as a primary motivation for hiring an MSP.
Collaborating with a reliable managed service provider can provide financial advisors with the expertise and support necessary to navigate the technological landscape effectively. MSPs can offer comprehensive solutions including network security, proactive monitoring, and efficient tech deployment, allowing financial advisors to focus on their core functions.
Challenge 3: Overcoming Technological Hurdles for a More Productive Business
Productivity within the finance sector has faced a downturn, necessitating smarter integration of both old and new technologies. This integration can help financial advisors stay current and enhance productivity. Key benefits encompass:
- Secure data access from any device and location
- Streamlined collaboration and communication
- Cost reduction and optimization
- Enhanced cybersecurity and compliance
Transitioning to the new age of technology and seeking guidance from experienced MSPs can ensure a smooth transition and bolster productivity. MSPs can provide tailor-made solutions, facilitate cloud migration, and ensure compliance with industry standards, helping financial advisors embrace the digital future.
Challenge 4: Cybersecurity – Detect, Protect, and Respond
Cybersecurity remains a critical concern for financial advisors. Phishing attacks, ransomware assaults, insider threats, and identity theft represent significant threats. The cost of cyber threats is substantial, emphasizing the importance of a robust cybersecurity strategy. Pertinent statistics include:
- 74% of financial sector leaders have experienced one or more ransomware attacks.
- 46% of global cyberattacks are targeted towards Americans.
- The average cost of a data breach in the United States in 2022 was $9.44 million.
Financial advisors must invest in email security, round-the-clock monitoring, managed firewalls, and comprehensive desktop security to fortify against cyber threats. Partnering with MSPs specialized in cybersecurity can provide financial advisors with the necessary expertise to detect, protect against, and respond to evolving cyber threats effectively.
In conclusion, the question of whether financial advisors will evolve or perish with technology is critical and timely. Embracing the right technology and partnering with trusted allies like CloudScale365, which offers managed IT services and expertise in cloud hosting, security, and business continuity, can be instrumental in navigating these challenges successfully. By proactively addressing these challenges and leveraging the expertise of MSPs, financial advisors can not only survive but thrive in this evolving landscape of technology in the financial services sector.
