Jul 10 2026
Cloud

What Financial Services IT Leaders Need To Know About Enterprise Service Management

ESM extends IT service management principles across compliance, HR, legal and operations, helping financial institutions reduce risk, accelerate audits and improve the employee experience.

Financial services organizations have long led in deploying IT service management as a comprehensive approach to designing and improving end-to-end IT delivery. But as banks, insurers and wealth management firms face mounting regulatory pressure, distributed workforces and complex cross-departmental workflows, the industry is increasingly turning to enterprise service management — the extension of ITSM principles beyond IT to departments such as compliance, risk, HR, legal and facilities.

The stakes in financial services are higher than in most industries. A missed approval chain, an undocumented handoff or a siloed service request doesn’t just slow operations — it can become a compliance finding. Gartner forecasts that global enterprise IT spending in banking and investment services will grow 9.5% in 2026, to $857.5 billion, with much of that investment directed at platforms that can unify service delivery and keep pace with regulatory demands.

Consider, then, platforms with ESM as a built-in tool — united with artificial intelligence — instead of a disconnected point solution.

“Companies need an ESM solution that understands the unique needs of each department, connects disparate systems and automates workflows to solve problems fast,” says Valerie Myers Christensen, senior director for commercial solutions and product operations at ServiceNow.

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Why ESM Is a Natural Fit for Financial Services

For IT leaders in financial institutions, the challenge isn’t just keeping systems running, it’s ensuring every service interaction is traceable, compliant and auditable. When an employee submits a request that spans IT, legal and compliance, the traditional siloed approach creates gaps. Those gaps invite regulatory risk.

ESM replaces that fragmented approach with modernized, automated workflows that create a documented trail across every department. For firms subject to the Sarbanes–Oxley Act (SOX), the Financial Industry Regulatory Authority (FINRA), the General Data Protection Regulation (GDPR) or state-level financial regulations, that audit-ready process documentation is not a nice-to-have — it’s a requirement.

An organization should not feel apprehensive about adopting an ESM tool based on its size or complexity. Rather than asking, “Are we too regulated for rapid ESM adoption?” Christensen says, organizations should reframe the question as, “Where is our service delivery breaking down and costing us time, money and compliance exposure?”

Even large financial institutions can have significant inefficiencies in IT, HR, compliance and risk workflows that directly affect the employee experience and expose the firm to audit findings. An ESM solution that comes preconfigured at a fixed price can support such organizations to go live within weeks instead of quarters, with the compliance guardrails already built in.

However, consolidation can quickly go sideways if firms try to do everything at once.

READ MORE: How banks are using AI for help with regulatory compliance.

“Where consolidation goes wrong is when organizations try to boil the ocean. They map every single workflow before going live, chase perfection and end up with a multiyear program that loses organizational will before it delivers value. The overhead that people fear from a single platform is often self-inflicted from overengineering the rollout,” Christensen says.

So, what’s the right approach?

“Constrained scope with high confidence,” she explains. “Start with the workflows that are already semistructured, the ones where people know roughly what should happen, but the execution is messy. Those digitize well, fast, and create momentum. The complex, exception-heavy processes can come later, once the platform is trusted.”

For financial services teams, that often means starting with high-volume, well-understood workflows such as access provisioning, employee onboarding and offboarding, or IT incident management — processes that are already partially documented and ripe for automation — before extending ESM to compliance attestation or regulatory change management.

Valerie Christensen headshot
The discipline of implementing ESM — mapping the workflow, agreeing on the steps, defining ownership — is often more valuable than the automation itself. AI amplifies that foundation, but it doesn’t replace it.”

Valerie Myers Christensen Senior Director for Commercial Solutions and Product Operations, ServiceNow

AI-Driven Automation and the Compliance Advantage

Work that is high-volume, repetitive and rule-based will see the most immediate, clear value for automation, Christensen notes. In financial services, that means password resets, access request routing, ticket classification and first-line responses to common HR and compliance questions — tasks that consume an analyst’s time without adding strategic value.

The more complex capabilities appear when AI is embedded into a platform solution from the start, integrated within the workflow so an employee can easily use familiar tools, such as Slack or Teams, instead of navigating to a separate portal.

Christensen notes that ServiceNow’s AI “deflects 70% of Robinhood’s employee requests before human intervention is needed across IT, HR and legal, reducing manual effort by 2,200 hours across 1,300 tickets monthly, with AI embedded directly into workflows. That’s a real experience improvement.”

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That kind of deflection matters even more in regulated industries. Every ticket handled automatically is a ticket that’s consistently documented, consistently routed and consistently resolved within policy — without relying on an individual analyst’s judgment. Investment banking and capital markets firm Jefferies, for example, reported 90% faster resolution of high-risk exceptions and a 95% faster audit response after implementing ServiceNow workflows.

True automation requires documented processes, Christensen says, and it can’t fix broken ones.

“If your onboarding workflow has five handoffs that happen inconsistently, automating that workflow just makes the inconsistency faster. The discipline of implementing ESM — mapping the workflow, agreeing on the steps, defining ownership — is often more valuable than the automation itself. AI amplifies that foundation, but it doesn’t replace it,” she adds.

For financial institutions, that discipline is especially valuable. The process documentation required to implement ESM properly often becomes the compliance evidence that regulators ask for — turning an operational project into a dual-purpose compliance investment.

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