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Visionary Voices

Herculean Evolution of Financial Services

The Herculean Evolution of Financial Services

Stephen Hook
Partner, Technology & Data Services

In our latest Visionary Voices conversation, we sat down with Stephen to discuss the accelerating transformation of financial services firms and the evolving role of the CIO. His message is clear: financial institutions must get their data right, navigate growing regulatory complexity, and rely on consultants who have truly walked in their shoes.

Key insights from our conversation include:

Data Is the Fuel—and the Bottleneck—for AI

“The fundamental fuel for AI is data,” Stephen explains. “And in any large financial services firm, you’re looking at 50 years of legacy databases and unstructured data spread across the organization.”

As firms race to adopt AI, they’re discovering the real challenge lies not in algorithms—but in data infrastructure. Cleaning, structuring, and governing legacy data is no small feat. It requires both deep technical expertise and institutional knowledge. The firms that succeed will be those that take a strategic approach to their data foundation—not just pilot AI tools on top of messy systems.

The firms that succeed will be those that take a strategic approach to their data foundation—not just pilot AI tools on top of messy systems.

AI Won’t Replace Senior Experts—It Will Elevate Them

Despite fears of AI displacing jobs, Stephen sees a different picture:

“Every output from a GenAI model today still needs a human expert—someone who understands the domain—to validate, correct, and apply the results.”

While AI will automate routine tasks, it enhances the value of seasoned practitioners who can bring context, judgment, and credibility to the table. In essence, AI becomes a force multiplier—not a replacement—for senior expertise.

Every output from a GenAI model today still needs a human expert—someone who understands the domain—to validate, correct, and apply the results.

Regulatory Complexity Is the Next Big Barrier

“If you’re operating in Europe under the EU AI Act and also in the U.S. under a different regulatory landscape, what’s your global policy? Do you adopt the highest standard across the board?”

As regulatory frameworks diverge globally, financial services firms face difficult decisions. Should they apply a high-water mark standard globally? Or attempt to tailor compliance region by region? Navigating these questions requires a blend of legal, operational, and strategic insight—making regulatory-aware innovation an imperative.

AI Brings a New Cost Discipline for CFOs

AI adoption isn’t just a technical or regulatory challenge—it’s a financial one.

“Smart organizations will need strategies to manage AI-related costs while maximizing ROI,” Stephen notes. “This is where practitioners with real-world experience have an edge over generalist consultants.”

From compute costs to implementation overhead, organizations will need clear value frameworks to make sustainable AI investments.

The Power of Practitioner-Led Consulting

Stephen is a strong advocate for “CIO practitioner consulting”—engagements led by people who have done the work themselves.

“You need people who deeply understand the industry and have sat in the chair. That’s what drives results.”

He recalls a multi-year engagement with a Tier 1 global bank that spanned AI innovation, mainframe decommissioning, and full-stack transformation. The reason it succeeded? The team was led by former CIOs who understood the client’s business, constraints, and technical reality from first-hand experience.

Looking Ahead: Three Priorities for FS Technology Leaders

1

Modernize Data Infrastructure: Before AI can generate business value, firms must address the foundational issue of fragmented, aging data systems.

2

Prioritize Practitioner-Led Strategy: Successful transformation requires advisors who understand both the business and technology—not just one side of the equation.

3

Build Regulatory-Aware Innovation Models: Navigating global regulatory complexity is no longer optional. Innovation must align with evolving compliance expectations.

The Bottom Line

Transformation in financial services isn’t about adopting shiny new tools—it’s about making the right strategic choices, supported by people who’ve done the work before. The firms that win will be those who pair AI and data capabilities with practitioner expertise and domain fluency.

If you’re leading technology transformation in financial services and need partners who’ve walked in your shoes—let’s talk.

Visionary Voices is a segment of RGP’s LinkedIn newsletter, Mindshift. Each month we highlight a unique futurist who challenges us to think differently and to drive innovation. Mindshift also contains valuable research and curated content.

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