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Digital Transformation's Impact on Financial Services Companies: Navigating the Evolution of Audits
Zeynep Deldag EY Global EMEIA Financial Services FSO Assurance Digital and Innovation Leader, EMEIA FSO Financial Accounting Advisory Services Partner, Ernst Young Nederland LLP
5 minute read
13 Jan 2020
As technology continues to reshape the financial services landscape, it is revolutionizing not only how companies operate but also how their audits are conducted. The financial services sector's transformation involves upgrading legacy systems and implementing agile working practices across business functions in pursuit of increased efficiency and agility. Companies are leveraging new technologies like blockchn, data analytics, IoT, and robotic process automation RPA to overhaul operations, enhance customer service delivery, manage risks more effectively, and adapt to constant change.
The adoption of technology is driving the digital transformation journey for financial services firms, enabling them to provide better online banking experiences, develop innovative digital platforms, streamline insurance application processes, and leverage data quality improvements. Cloud infrastructure's benefits are also being realized, offering advantages such as cost reduction, enhanced security, scalability, flexibility, and more efficient analytics capabilities.
Automation plays a pivotal role in this transformation, particularly for sectors like banking and insurance, which are highly transaction-based with large volumes of data to manage. By automating procedures and embracingand , administrative burdens on companies during audits decrease while freeing up time for auditors to focus on judgments' accuracy and applicationa crucial aspect of accounting standards.
CFOs, CTOs, and audit committee members can maximize the benefits of a digitally transformed audit by preparing their organizations accordingly. This includes understanding technology's role in delivering high-quality services, adapting to changes in the business environment, and leveraging new skill sets such as communication, critical thinking, data analysis, and design.
The digital audit is evolving alongside financial services' growth, with auditors continuously innovating to keep pace with technological advancements across sectors. By using technology tools for larger sample size analysis, auditors can gn deeper insights into internal processes, apply professional skepticism more constructively, challenge management, and assess risks more effectively, contributing to a streamlined and efficient audit strategy.
The increasing pressure on financial services companies to build trust is being addressed through the digital audit process, which offers enhanced perspectives and insights. By embracing automation and leveraging technology tools, companies are moving towards providing more accurate data-driven analyses, improving transparency, and fostering confidence in their operations.
In , financial services firms are undergoing significant digital transformations that necessitate adapting auditing practices to stay relevant and effective. The evolution of audits is not just about mntning the status quo but embracing new methodologies that enhance efficiency while upholding high standards of service and integrity.
Zeynep Deldag EY Global EMEIA Financial Services FSO Assurance Digital and Innovation Leader, EMEIA FSO Financial Accounting Advisory Services Partner, Ernst Young Nederland LLP
Specializes in global banking and insurance CFO aga issues, including assurance services and large-scale transformation programs. Inspires by her dual passion for professional challenges and family.
The original article has been reorganized, rewritten, and expanded to provide a more detled and comprehensive view of the impact of digital transformation on financial services companies and their audits. The focus is now on not only technological advancements but also the role they play in enhancing transparency, efficiency, and trust-building efforts within the industry.
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