Picking up where we left off in part one, our exploration of the key themes from DIGIT Financial Services Technology Summit - held on 1st May 2025 - continues. In the second instalment of this two-part series, we're shifting gears to explore both the risks and opportunities currently dominating conversations in the industry. From mastering risk in a volatile landscape and unleashing the full force of digital transformation, to riding the Open Finance wave and preparing for the quantum leap, these are the conversations that matter right now.

We’ve summarised the remaining four key themes from the event below.

4. Cybersecurity: The looming threat of non-human identities

The opening session, led by Chris Owen (Dotnext Europe), highlighted cybersecurity as a critical concern, focusing on the emerging threat of non-human identities (NHIs).

Owen noted the exponential growth of NHIs within organisations, often outnumbering human identities significantly. He warned that the increasing sophistication and autonomy of AI agents pose a substantial cybersecurity risk. A client attack case study illustrated how hackers can exploit vulnerabilities in NHI identity management to access sensitive data through unmonitored encryption keys.

While AI agents offer automation benefits, Owen cautioned that as they become more self-aware, they might autonomously grant themselves access and create NHIs for confidential systems without proper oversight.

Key takeaway: Be vigilant about the risk of uncontrolled identity creation by AI agents. Adhere to evolving regulatory requirements like PCI DSS, continuously monitor and inventory identities, implement robust access controls, and enhance logging/telemetry.

5. Digital transformation: Beyond technology implementation

Digital transformation was a central theme, with a strong emphasis on achieving positive outcomes for business, customers, and colleagues. Dave Townsend (LBG) presented a compelling case study of LBG and Scottish Widows' multi-year transformation initiative.

He highlighted the complexities of transforming a legacy portfolio of long-term savings and retirement products, comprising over 800 products supported by systems up to 49 years old. LBG's strategy focused on improving customer outcomes, enhancing colleague tools, simplifying complexity, and ensuring future agility and sustainability.

Key takeaway: Effective digital transformation in financial services demands a holistic approach that integrates customer/colleague experiences, operating model transformation, future agility, and sustainability.

6. Open finance: From regulatory burden to growth engine

Louise Beaumont (Mastercard) championed the potential of Open Finance to drive innovation and growth, envisioning a future where individuals have control over their data, fostering more inclusive and dynamic markets.

Her core message advocated for individual data access and control as the foundation for "great big beautiful markets" benefiting everyone. Smart, connected data could empower individuals to better manage their finances and access wealth management tools currently out of reach for many. The potential of open data to transform sectors like SME finance by addressing funding gaps through personalised lending was highlighted.

Beaumont stressed the need for a well-functioning ecosystem with active participation from various stakeholders. She urged the industry to shift from a "compliance mentality to a growth mentality" and design sustainable and equitable economic models. Regulatory frameworks should define desired outcomes and empower industry innovation. Collaboration across the financial services ecosystem is crucial for realising Open Finance's full potential, focusing on delivering real value, especially to underserved consumers.

Key takeaway: Open Banking and smart data can deliver significant social and economic value, but only through courageous collaboration and a shared commitment to inclusion across the ecosystem.

7. Quantum computing: The exponential and existential horizon

The summit also addressed the long-term implications of quantum computing. Philip Intallura (HSBC) provided a balanced view, outlining both the potential commercial advantages for early adopters and the catastrophic risks associated with quantum computers breaking public key cryptography. This necessitates a proactive approach to risk management and the adoption of quantum-resistant cryptographic techniques.

Key takeaway: Quantum computing is a looming mega-trend requiring immediate attention from financial institutions. Proactive investment in research, development, and the implementation of quantum-resistant cryptography is crucial for mitigating long-term security risks.

Looking ahead

The DIGIT Financial Services Technology Summit painted a clear picture: the future of financial services hinges on embracing change with both vision and agility. From navigating the complexities of cybersecurity and digital transformation to seizing the opportunities of Open Finance and preparing for the quantum revolution, the path forward demands strategic partnerships and decisive action.

At CreateFuture, we're committed to empowering financial institutions to not just adapt, but to lead in this dynamic environment. Let's start the conversation about how we can help you turn these insights into tangible results.