Understand the Value

Learning Objectives

After completing this unit, you’ll be able to:

  • List common business challenges in the financial services industry.
  • Describe how Financial Services Cloud solves these challenges.

Exploring Uncharted Terrain

The hardest part of any great adventure is taking that scary first step. In this new era of customer connectivity and personalized experiences, financial services providers face several challenges that require them to take risks and make changes. Let’s walk through the common challenges these financial services providers face.

Business Challenge #1: Regulatory Compliance

The financial crisis of 2008 resulted in several regulatory changes for the financial services industry. Since then, regulators have introduced several standards around how a financial services provider stores, backs up, reports, and secures their data. Let’s look at how these standards affect wealth and asset management, banking, and insurance.

Wealth and Asset Management 

Advisors have to act as fiduciaries, or people who are legally obligated to prove to their financial regulators that the investments they make are in the best interests of their customers.


Banks have to follow hundreds of regulatory obligations and are spending millions to make sure they meet compliance standards. But when they fail to deliver, their reputations significantly drop, resulting in low customer loyalty and trust, and potentially significant fines.


Insurance companies have to protect sensitive customer information—such as personally identifiable information (PII) and protected health information (PHI). Over the last few years, many state and federal regulators across the U.S. have begun conducting their own investigations and charging fines for noncompliance. 

Transamerica, for example, addresses their regulatory requirements faster by using Financial Services Cloud to:

  • Create personalized journeys to connect advisors, licensed agents, and customers.
  • Develop processes to meet compliance and growth initiatives.
  • Improve communication between agents and security registered representatives.

Business Challenge #2: Customer Loyalty Crisis

Customers today are no longer loyal to one financial services provider. In retail banking, for example, 36 percent of customers use a financial service provided by a firm other than their primary bank, and these loyalty concerns are consistent across each area. 

Wealth and Asset Management 

Over the next few decades, the largest and most affluent generations will transfer their wealth to younger generations. And, as studies show, many of these inheritors are expected to shop for new, tech-savvy financial advisors who can provide them with fast, accurate, and consistent client experiences across any channel of their choosing.


Customers rely on banks to protect their hard-earned money, yet they often feel like they’re just a number when they visit a branch or contact a call center. As a result, customers turn to other businesses that provide them with consistent, personalized, and convenient customer experiences. 


Consumers in today's market are getting harder and harder to please. Unlike previous generations, they’re increasingly turning to the internet to shop for insurance, where they often make their purchasing decisions based on price and convenience, not relationships.

Perigon Wealth Management solved this challenge using Financial Services Cloud to:

  • Build deeper relationships with their clients.
  • Combine multiple client systems into one connected platform.
  • Deepen and grow their book of business.
  • Eliminate the amount of time and money spent on costly technology customizations.

Business Challenge #3: The Rise of a New Class of Competitors

Customers today are educated and tech-savvy. They expect financial services providers to function much like the digital leaders they’re used to seeing. These savvy customers are now turning to innovative financial technologies—businesses such as WeChat, Venmo, N26, and Lemonade—for financial services that are on par with the technology they use in their everyday lives. 

These businesses compete with traditional financial services providers, redrawing the competitive landscape that makes up the industry today. In fact, according to the Millennial Disruption Index by Scratch, “Seventy-three percent of millennials say they would be more excited about a new offering in financial services from Google, Amazon, Apple, PayPal, or Square than from their own bank.”

Let’s watch Colin Grover, Director of Advisory Services and Strategy at Portfolio Solutions, talk about how they use Financial Services Cloud to differentiate themselves from this new class of competitors.

The quiz at the end of this unit asks a question about the content of this video. Be sure to watch the video now, so you get the information you need to answer the question.

Business Challenge #4: Isolated Data and Outdated Systems

Advisors, bankers, and agents often struggle to piece together information from outdated systems that have been built up over several decades. On top of it all, acquisitions make this issue worse. How? Financial services providers struggle with incompatible systems and data that go out of sync, preventing them from innovating and accessing accurate customer information.

Trilogy Financial solved this challenge using Financial Services Cloud to:

  • Customize it with specific integrations to fit the firm’s needs from client onboarding to marketing.
  • Increase collaboration across team members throughout the organization.
  • Hold clients accountable to their financial goals with tracking and personalized advice delivered at the right moment.

As you can see, Financial Services Cloud offers significant value to financial services providers. It leads each of them down a path to success by:

  • Reducing implementation costs and development work with prebuilt, financial services-specific features.
  • Providing them with continuous financial services-specific innovation.
  • Organizing all the information in one place so everyone has a consistent, single view.

Now that you understand the benefits of Financial Services Cloud, let's explore how Financial Services Cloud’s features help financial services providers reach their goals.


Did You Watch the Videos?

Remember, the quiz asks about the video in this unit. If you haven't watched it yet, go back and do that now. Then you'll be ready to take the quiz.

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