Best Practices , Trends
June 06 | Use Cases
How Fintechs Can Overcome 5 Salesforce Challenges
Estimated read time 5 min

The financial technology (FinTech) sector is experiencing rapid growth. According to Fortune Business Insights, the FinTech market achieved a valuation of USD 257.26 billion in 2022 and is projected to attain USD 882.30 billion by 2030, marking a compound annual growth rate (CAGR) of 17.0% during the analyzed period. But with this rapid innovation comes the challenge of managing complex customer journeys, stringent regulations, and a growing volume of data. Many Fintech companies leverage Salesforce as their Customer Relationship Management (CRM) platform, but out-of-the-box solutions often fall short of addressing the unique needs of the industry.

Let’s dive into five key challenges Fintech companies face with Salesforce and explore strategies to overcome them:

Challenge 1: Data Security Fortress –  Combating the Threat Landscape

The Problem: Fintechs handle some of the most sensitive data in the digital world – customer financial information, transaction history, and personal details.  A data breach can have devastating consequences, eroding customer trust, resulting in hefty fines, and even causing business closure. The IBM Cost of a Data Breach Report 2023 revealed the average total cost of a data breach in the financial services sector to be a staggering $US 5.90 million. Among the consequences of attacks, data leaks stand out at 64%, while disruption of services or key business processes is notable at 40%. This trend reflects the shift from sophisticated attacks targeting financial organizations to the prevalence of ransomware attacks and large-scale data leaks, where criminals distribute stolen databases either for free or for sale, often driven by hacktivist motives.

Source: positive technology

Delegate’s Solutions: Salesforce boasts robust security features, but proper configuration and user management are paramount. Here’s a multi-pronged approach:

  • Multi-Factor Authentication (MFA): Implementing MFA adds an extra layer of security by requiring users to provide a second verification factor, like a code from their phone, in addition to their password. This significantly reduces the risk of unauthorized access, even if a hacker steals a user’s login credentials.
  • Data Encryption: Encrypting sensitive data, both at rest and in transit, renders it unreadable by unauthorized individuals. Salesforce offers various encryption options to safeguard customer information.
  • Role-Based Access Control (RBAC): Granting users access only to the data they need to perform their jobs minimizes the risk of accidental exposure. Configure user roles and permissions meticulously to ensure appropriate access levels.
  • Regular Security Audits: Conducting regular penetration tests and security audits helps identify and address vulnerabilities before they can be exploited
  • Employee Training: Educating employees on best practices for data security, like password hygiene and phishing awareness, is crucial.

Challenge 2: Legacy Labyrinth – Integrating Outdated Systems

The Problem:  

Many Fintech companies rely on legacy systems for core functions like transaction processing and account management. A legacy system denotes antiquated technology, software, or procedures that have been operational for an extended duration. While these systems may have effectively supported financial institutions previously, their constraints become more pronounced as the industry progresses in the digital age. Integrating these siloed systems with a modern cloud platform like Salesforce can be a complex and time-consuming endeavor. The global expenditure by financial institutions (FIs) on antiquated payment systems is projected to escalate, reaching an estimated $57.1 billion in 2028, a substantial increase from $36.7 billion recorded in 2022, with an average annual growth rate of 7.8%.

Source: TechBlocks

Delegate’s Solutions:  Several strategies can bridge the gap between legacy systems and Salesforce:

  • API Integration: Application Programming Interfaces (APIs) allow data to be exchanged seamlessly between Salesforce and legacy systems. This approach can be resource-intensive but enables a high degree of integration.
  • Cloud-Based Integration Platforms: Several cloud-based integration platforms provide pre-built connectors for Salesforce and various legacy systems. This can simplify the integration process but may limit customization options.

Challenge 3: Data Deluge – Drowning in Information Without Insights

The Problem: Fintech applications generate a vast amount of data, which presents both opportunities and challenges for organizations. This data includes user transactions, financial information, market trends, and other valuable insights that can be leveraged for product development, risk management, and customer personalization. However, the sheer volume of data generated by Fintech applications can quickly overwhelm traditional customer relationship management (CRM) systems like Salesforce, leading to performance issues, scalability challenges, and reduced efficiency.

These platforms offer a range of features and capabilities tailored to the unique requirements of Fintech applications, such as:

  • Slow Performance: A data-laden Salesforce instance struggles to process queries efficiently, resulting in sluggish loading times and a frustrating user experience. Nevertheless, in APAC, sixty percent of office workers identify technology failures or malfunctions as the primary factor impeding their engagement at work.
  • Data Silos: Without proper data governance, information gets scattered across various objects and fields within Salesforce, hindering a holistic view of the customer. This fragmentation can lead to inaccurate reporting and difficulty identifying customer trends.

Delegate’s Solutions: Embrace Data Governance and Leverage Integration Tools

  • Data Cleansing:
    – Utilize Salesforce tools like Data Loader and Data Import Wizard to regularly cleanse, deduplicate, and maintain data accuracy.
    – Standardize data formats, validate data, and establish quality standards for consistent and reliable information.
  • Data Modeling:
    – Develop a structured data model using Salesforce tools like Schema Builder and Object Manager.
    – Define entities, relationships, and attributes to efficiently represent data and support seamless reporting.
  • Utilize Integration Platforms:
    Employ integration platforms such as Salesforce MuleSoft or Jitterbit to unify external data sources with Salesforce.
    Establish secure connections, configure data mapping rules, and monitor integrations for continuous data synchronization.

While these challenges can seem daunting, Delegate’s team of seasoned Salesforce experts possess the experience and industry knowledge to guide your Fintech business through every step of the Salesforce optimization journey. Delegate team works closely with you to understand your specific needs and develop a customized strategy to address your data security, system integration, and data analytics hurdles.

See how we help Karat Financial overcome common challenges for a Financial Technology company. View the Case Study.

From implementation and configuration to ongoing support and optimization, our experts empower you to leverage Salesforce as a strategic advantage, enabling you to deliver exceptional customer experiences, streamline operations, and achieve your growth goals. Get a complimentary assessment today. Contact us!