A panel with executives from TransUnion and AWS explores how
CHICAGO, September 30, 2021 (GLOBE NEWSWIRE) – As financial institutions prepare for a more normal lending environment, a recent panel of executives from TransUnion (NYSE: TRU) and Amazon Web Services, Inc. (AWS) postulates that this sector should to avoid a return to normal by investing in disrupting their workflows. The main panel, “Unlocking Banking Opportunities through Cloud Computing,” was presented last week at the 2021 Virtual TransUnion Financial Services Summit, which was attended by financial services executives from across the country.
The panel included Abhi Dhar, CITO of TransUnion, and Scott Mullins, Managing Director and Head of Global Financial Services Business and Market Development at AWS Financial Services, and was moderated by Matt Komos, Vice President of Research and Consulting of TransUnion.
Panelists highlighted how disrupting financial services business through cloud computing could help reduce the invisibility of credit, bank the unbanked, and create a credit history for those who don’t. Panelists said the need for such a change is also rooted in the fact that consumer preferences and the lending landscape have changed.
With 244.3 million active consumers on credit (those with a balance) in the United States in the second quarter of 2021, or 3.2 million more than the previous year, financial institutions could be encouraged to modify their practices in order to ” acquire new customers and retain existing customers.
“While a return to the status quo in financial services has an obvious immediate appeal, especially given the economic shocks of the past 18 months, we believe a return to old ways of doing business puts the industry at risk. to be left behind. by vast social and demographic changes, ”Dhar said. “Exploiting cloud computing and making other innovative changes to their processes is the best offense for financial services companies operating in an ever-changing environment. Ultimately, technological innovation will trigger human innovation in the financial services industry. “
While financial services organizations can reap a myriad of benefits from updating their processes, panelists examined how this particular industry is prone to resist change. Among the reasons for resistance to change is the difficulty of updating existing systems.
“Innovation is the process of making changes to something that is already established. Changing established processes, practices and technologies can be a challenge for financial institutions, as they are also evaluating how to make the necessary adjustments to their risk management practices, ”said Mullins. “At AWS, we see industry adoption of cloud services as an opportunity to not only improve the technology that powers the global financial system, but also to inform and evolve the ability of financial institutions to measure and manage. risks more effectively.
Four key steps to healthy disruption
Panelists were faced with the challenge of what disruption might look like in the future financial services landscape. For change to happen, panelists said the following four steps must be followed:
- Requalify talent at scale: Hiring is obviously essential to building a workforce with the technological skills that organizations need to be competitive. But there are limits to an organization’s ability to recruit new talent. A limited supply of experienced engineers makes training and retraining of existing team members a must. Investing in training a large-scale workforce is essential to overall transformation efforts.
- Invest in and embrace a diverse workforce: As studies have shown, diverse teams perform better than homogeneous teams. In addition, if an organization wants to grow its business and access new markets, it must develop new products and services for new consumers. To do this, a business needs a diverse workforce to get these products right.
- Create and foster a culture of experimentation: The cloud reduces the costs and risks of research, allowing organizations to try new ideas and fail quickly. Creating a culture of experimentation enables organizations to respond more quickly to changing customer needs and changing trends in consumer behavior. The result is a feedback loop that allows customer feedback to drive continuous innovation.
- Make it easier to access and use alternative data: To access new markets and new consumers, organizations cannot rely solely on the datasets they traditionally use to assess creditworthiness. They should facilitate access to alternative data sources to develop non-traditional credit models. Additionally, better data integration allows organizations to better assess their loan portfolios and apply different data science techniques, including machine learning.
“It’s important to remember that when we talk about unlocking opportunities, we’re not just talking about technology serving organizations, we’re also talking about people: creating value for financial consumers, their families and their communities at the heart of the business. broad sense, ”Mullins said. “The future of the industry lies in greater inclusion, equity and diversity, and we believe technology will play a key role in this evolution. “
To better support its own innovative practices, including offering more solutions that foster greater financial inclusion, TransUnion recently began implementing a hybrid multi-cloud strategy. As part of this strategy, TransUnion has worked with AWS, among other companies, to ensure the highest levels of security while further automating management and processes.
“TransUnion is a good case study of how disrupting the standard can be exceptionally productive for an entire organization. With our hybrid multi-cloud strategy, we free up the company’s technologists and engineers to innovate and give them access to a larger technological toolbox made possible by the cloud, ”Dhar concluded.
About TransUnion (NYSE: TRU)
TransUnion is a global information and analysis company that makes trust in the modern economy possible. To do this, we provide a complete picture of each person so that they can be reliably and securely represented in the market. As a result, businesses and consumers can transact with confidence and achieve great things. We call it Information for Good.®
With a leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create business opportunities, great experiences and personal empowerment for hundreds of millions of people.