Tag: banking

Navigating Disruptions in BFSI: The Role of Desktop Infrastructure Transformation (DIT) | Blog

The Banking, Financial Services, and Insurance (BFSI) industry faces various challenges in today’s evolving environment, from inflation and cybersecurity to increased competition from fintechs, and changing customer expectations. Desktop Infrastructure Transformation (DIT) has emerged as an attractive solution to combat these market disruptions because of its ability to optimize costs, empower users, and enhance IT efficiency. In this blog, we’ll explore how DIT can help the BFSI industry tackle pressing issues.

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BFSI in the “Age of Disruption”

Benjamin Franklin’s wise words, “When you’re finished changing, you’re finished,” still hold true today, particularly in the rapidly evolving world of BFSI. Recent events such as the collapse of Silicon Valley Bank and UBS Bank’s acquisition of Credit Suisse show that those who fail to adapt will be left behind even quicker than they can Google “subprime mortgage crisis.”

Facing various internal and external disruptions, BFSI enterprises struggle with difficult questions. However, a recent Everest Group survey of 500 senior stakeholders supports that “fortune favors the bold.” The survey found 59% of respondents identify digital transformation maturity as a critical priority to withstand disruptions.

Considering these findings, the following framework provides an overview of disruptions BFSI enterprises face and outlines the actions to offset them:

Picture1 6
Source: Everest Group 2023

BFSI enterprises need to act swiftly and effectively to mitigate the impact of these disruptions. As highlighted in the framework above, DIT and its two sub-components – as part of an overall mature digital transformation approach – can provide a strong buttress against disruptions.

These sub-components can be broadly defined as follows:

  • Virtual Desktop Infrastructure (VDI): Technology that allows a user to access a desktop operating system and its applications from a remote server and thin clients
  • Full-stack Desktop-as-a-Service (DaaS): Cloud computing environment with bundled pricing for hardware, software, and ancillary management services in a pay-per-use model

In the following section, we examine the most pressing disruptions BFSI enterprises face and explore how DIT can provide a solution to address them:

Disruption Evidence Complication Question DIT to Rescue
Compounding impact of concurrent inflation and recession Inflation is at a 40-year high in most developed countries such as the US and UK –      Reduction in banking payments and transactions

–      Dip in insurance investments and higher payout expenses

–      Deterrence of new bond issuances and Initial Public Offerings

How can enterprises offset the impact of inflation and be prepared for a recession? Cost effective and pay-as-you consume model through DaaS or VDI
Embracing Banking 4.0 and seizing new business opportunities The customer acquisition cost for a physical branch is approximately 50 times higher than for digital banking –      BFSI companies are under pressure to digitize their platforms/services immediately

–      Automation and data-driven decision-making has become pertinent

How can BFSI enterprises effectively leverage the Banking 4.0 approach and seamlessly launch related businesses and products? Cloud-based desktop infrastructure for agility and to ensure faster time-to-market for digitized products/services
Increasing prevalence of cybersecurity attacks More than 60% of global financial institutions with at least $5 billion in assets were hit by cyberattacks in 2022 –      Higher risks of financial losses and reputational damage

–      Increased regulations and compliances, creating operational complexities

How can BFSI companies manage cybersecurity threats while maintaining productivity and profitability? Embedded security over bolt-on security through centralized security controls and Artificial Intelligence (AI)-based threat analytics within VDI
Encroaching fintech startups, reshaping traditional BFSI Venmo’s users increased by 11% year over year in 2022, while the traditional bank growth on average is about 2-5% –      Increased pressure for collaborations between fintech startups and traditional banks

–      M&As leading to business process changes

How can enterprises seamlessly transition to new business models and strengthen collaborations? On-demand desktop infrastructure scalability and seamless integration across enterprises through VDI and DaaS

Source: Everest Group 2023

Empowering BFSI Organizations through DIT

To better understand the composition of VDI and full-stack DaaS in a typical enterprise environment, the below framework provides more detail of the two previously defined key DIT components and their enablers:

Picture2 5

Note: The above framework is not an exhaustive representation of all the components within DaaS and VDI.

Source: Everest Group 2023

Now, let’s take a look at the benefits of this transformation initiative by exploring some applications of DIT that ideally align with the needs of the BFSI sector:

  • Cost optimization: With agile capacity management, increased device lifespan, and a pay-as-you-consume model, BFSI organizations can achieve cost efficiency while maintaining desktop infrastructure quality
  • Single pane of observability: AI-led analytics, synthetic bots for application performance testing, and proactive alerts help IT resources within a BFSI enterprise effectively monitor and manage their desktop infrastructure, achieving operational excellence
  • User empowerment: Personified Virtual Machines (VMs), a self-help marketplace, and DevOps-based feature development enable organizations to empower their end users and improve their experience
  • IT efficiency: Scalable architecture and limited upfront investment support expansion to alternative business models, geographies, and product lines. Cloud-hosted models also allow firms to seamlessly integrate with other IT stacks during mergers and acquisitions (M&As), and divestitures
  • Security and reliability: Automated patch management, trust zones, centralized security controls, and role-based access are some DIT features that enable continuous compliance with industry regulations and help BFSI enterprises avoid security breaches

Making DIT Real for BFSI Enterprises: Balancing Stability and Change

Let’s walk through the following use cases of DIT in various BFSI segments to demonstrate its value for employees ranging from investment traders to data scientists and knowledge workers:

Use case 1: Ensure zero downtime in a trading environment Scope: DaaS
Industry: BFSI Sub-segment: Investment banking Category: Emerging Persona: Power worker (traders)
The business need:

  • Supporting resource-intensive tasks, such as pre-trade processing, trade confirmation, and trade clearance
  • Enabling work on network-heavy applications, such as Bloomberg and Reuters
  • Embedding security and compliance
  • Supporting high-resolution audio-visual tasks
DaaS Benefits:

  • Lag-free, high-performance machines
  • Seamless access to critical trading systems through inexpensive thin clients
  • Enhanced user productivity and experience through improvement in metrics such as win rate, loss rate, and winning trades
  • Interactive, multi-screen support to bolster decision-making


Use case 2: Facilitate data-driven, rapid decision-making Scope: VDI, DaaS
Industry: BFSI Sub-segment: All Category: Emerging Personas: Data scientists, business analysts
The business need:

  • Identifying meaningful data patterns from large data sets for smarter decision-making
  • Leveraging data analytics for cyber risk insurance analysis, fraud management, actuarial analysis, and credit record management
  • Identifying potential opportunities and threats

  • Equips data scientists/analysts with a high-performance computing environment, accelerating decision-making
  • Enables secure remote access to custom platforms and tools to run compute-heavy Artificial Intelligence (AI) and deep learning workloads
  • Proactively identifies malicious transactions and requests


Use case 3: Realize synergies from M&A activities sooner Scope: VDI, DaaS
Industry: BFSI Sub-segment: All Category: Prevalent Personas: Knowledge workers and power workers
The business need:

  • Accelerating consolidations divestitures, and M&As
  • Providing omni-channel access during transition to critical functions such as wealth management
  • Avoiding business disruptions, cost leakages, and productivity loss

  • Seamless accrual of targeted synergies
  • Efficient onboarding of new workforce, improved productivity, and reduced employee downtime
  • Cost optimization through models such as pay-per-use in device infrastructure

These use cases demonstrate the substantial value DIT offers in addressing the vital requirements of the BFSI sector and mitigating market disruptions. Several key benefits of DIT include cost optimization, operational excellence, user empowerment, and enhanced IT efficiency.

Yet, it is essential to recognize and thoroughly assess the associated risks of this technology, such as user acceptance and training challenges, as well as potential dependencies on network infrastructure. By carefully evaluating these factors, enterprises can make informed decisions about investments like DIT aimed at enhancing the IT infrastructure and diminishing market disruptions.

Ultimately, however, understanding the risk of inaction is critical. As Tony Robbins, life coach and author, aptly notes, “Risk comes in many forms, but the most common one is simply not investing.”

To discuss Desktop Infrastructure Transformation, contact Prabhneet Kaur and Udit Singh.

Digital Experience Platforms (DXP) in Asset and Wealth Management (AWM) Products PEAK Matrix® Assessment 2023

Digital Experience Platforms (DXP) in Asset and Wealth Management (AWM) Products PEAK Matrix® Assessment

The Asset and Wealth Management (AWM) industry is seeing the democratization of finance, growing demand for personalized digital experiences, and the emergence of new products such as digital assets and ESG-compliant investments. To adapt to evolving customer preferences and meet regulatory requirements, AWM managers are increasingly turning to Digital Experience Platforms (DXPs) to revamp their operations, streamline costs, enhance data management capabilities, and deliver tailored client experiences. By leveraging DXPs, AWM firms aim to provide advisors with a comprehensive, real-time view of data through intuitive dashboards, enabling them to deliver better service.

The integration of DXPs empowers asset and wealth managers to optimize their processes, personalize client interactions, and create an enhanced advisor experience. DXP providers are plugging the gaps in functionality coverage through build, buy, and partnership investments, along with the infusion of emerging technologies in their current product offerings. They are also establishing a robust partnership ecosystem comprising FinTech point solutions, technology providers, WealthTechs, and consulting and implementation partners to drive commercial and GTM innovations.


What is in this PEAK Matrix® Report

In this report, we assess 12 leading DXP providers for AWM products and categorize them as Leaders, Major Contenders, and Aspirants. The research will help buyers select the right-fit technology providers for their needs, while technology providers will be able to benchmark themselves against the competition.


  • Twelve DXP providers for AWM products
  • Key trends in the DXP market for AWM products
  • Key enterprise sourcing considerations (strengths and limitations) for each of the 12 DXP providers evaluated
  • Implications for DXP providers


  • Industry: Asset and wealth management
  • Geography: global

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What is the PEAK Matrix®?

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Venture Capitalists Look To B2B Fintechs as Investing Market Shifts | In the News

Although macroeconomic factors are having a dampening effect on venture capital investments across the fintech space, the amount of funding going to enterprise and business-focused startups has increased in recent months compared to consumer-centric counterparts, a recent Pitchbook report shows.

Since the failure of Silicon Valley Bank in mid-March, financial institutions have looked at investing more in risk management technology. Ronak Doshi, Partner at Everest Group, said in March that he expects banks to increase their annual spends on risk technology by 8% to 12% in the next year.

Read more in American Banker.

IT Firms Trying to Expand Their Revenue Basket | In the News

Indian IT companies are trying to broad-base their businesses across verticals to reduce their dependence on a few select areas. For example, the revenue contribution for HCL Tech from the US has increased from 62.5% in FY18 to 64.1% in FY23. But in the same period, it brought down its BFSI exposure to 20.7% in FY23 from 24.9% in FY18.

Peter Bendor-Samuel, CEO at Everest group, said, “There is clearly concentration risk for TCS, Infosys, and Wipro in the BFSI which is the largest vertical for each of these firms. This BFSI concentration also carries geographic concentration as this work is largely out of the US and the UK with some exposure in Hong Kong and Singapore.”

Read more in Financial Express.

HSBC Hires 40 Former SVB Bankers to Create a US Startup Practice | In the News

HSBC has hired more than 40 former Silicon Valley Bank (SVB) employees to create its own practice focused on healthcare startups and venture capital funds in the US, hitting the gas on its entrance to a sector that experts say is challenging for banks.

Ronak Doshi, Partner at Everest Group specializing in digital transformation and banking, said in an interview in mid-March that startups want to bank with institutions that focus on specific industries, such as life sciences and healthcare.

Read more in American Banker.

Banks Expected to Increase Risk Technology Budgets after March Crisis | In the News

Regional banks are likely to upgrade their risk management technology as the recent problems in the industry raise concerns about all elements of their risk positions, experts say.

Most regional and super-regional banks previously sought to spend as little as possible on risk management technology to meet minimum regulatory and compliance requirements, said Ronak Doshi, Partner at Everest Group. However, over the past six weeks, banks have felt pressure from their boards, employees, and other stakeholders to prioritize risk assessment.

“Banks are suddenly saying, ‘Risk management is a key component of who we are as a bank,'” Doshi said. “It’s not just the cost of doing business. That’s business.”


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