Question 4 (25 Marks)

The financial industry is undergoing a radical shift, one driven by new competition from Finance Techs, changing business models, mounting regulation and compliance pressures, and disruptive technologies.

The emergence of Finance Tech startups is changing the competitive landscape in financial services, forcing traditional institutions to rethink the way they do business. As data breaches become prevalent and privacy concerns intensify, regulatory and

compliance requirements become more restrictive as a result. And, if all of that wasnt enough, customer demands are evolving as consumers seek round-the-clock personalized service. These and other financial industry challenges can be resolved by the very technology thats caused this disruption, but the transition from legacy systems to innovative solutions hasnt always been an easy one. That said, financial industry need to embrace digital transformation if they wish to not only survive but thrive in the current landscape.

Based on the statement above, analyze the main challenges that might affect financial industry nowadays.