Managing change is not easy. This is true for most organizations, and especially for banks. But, as management guru W. Edwards Demining bluntly stated,
“It is not necessary to change. Survival is not mandatory.” Let that sink in. Any business committed to future prosperity must overcome fear of the new and embrace change. This blog considers how modern platform technology and digital transformation
can help banks address change and make mastering the art of modernization an integral part of “business as usual”.
Change is scary for people and for businesses, and the current environment is only making that worse. With pandemic pressures impacting our lives, accelerating market shifts, and turning customer expectations upside down, it’s more important than ever for
banks to embrace digital and modernization. And the time is now – before getting left behind and outpaced by new fintech solutions from outside the traditional banking model.
True modernization starts at the core, and then builds up and out from there. Growth can, and will, come in many different ways, particularly as the FI enriches and expands their ecosystem. With a modern banking platform, the institution can draw from the
depths of the broader fintech landscape to find the best of breed solution that sets the bank apart from its competition.
As an incumbent bank, it may be difficult to see the benefits of modernization from the starting line. You’re looking at an overhaul of systems, technology, workflows and even the way you recruit and train your employees. The bank will have to invest in
new technology infrastructures, employee education and new business processes to match the pace of change and the innovative structure and flexibility of modern banking.
Taking on that kind of change may feel impossible, but it’s not. With the right support, guidance and solutions driving the transformation, your bank can come out on top. The climb may be steep at times, but the view from the summit will make it worth the
Flexing to Meet Customer Demands
Just like any other business, banks must seek ways to not only meet current customer wants and needs, but also to anticipate and address future requirements as
(or even before) they arise. Banks that fail to do this will face the loss of customers and prospects, as consumers turn to more agile organizations that can satisfy their unique needs and rising expectations, while suiting their lifestyles and preferences.
Some banks may try to skate by with a mobile app stacked on top of aging and inflexible technology infrastructure. The simple fact is that aging architecture cannot flex. Workarounds may delay modernization, but they do not address the underlying need for
change. Eventually these banks will experience issues similar to those of organizations that don’t modernize at all. While moving away from established systems and processes may feel daunting, it doesn’t have to be.
Consumers want ease of use, but that’s just the beginning. They’re also focused on finding businesses willing to partner with them in more personal ways. Today’s bank customers aren’t satisfied with just a mobile app or the convenience of not having to visit
a bank branch. The pandemic may have significantly sped digital adoption, but the push to more customizable, relatable interactions with businesses has been building for some time. Post-pandemic, customers will expect to keep the convenience of mobile, no-contact
practices that have become popular – and they’ll be looking for businesses to go the extra mile in other ways, too.
Banks that do this right will start from the bottom up, reinventing their core and launching digital-first, customer-first initiatives throughout their business models, technology stacks, software solutions, strategic plans, and more. Powered by and fully
participating in a platform ecosystem of fintech solutions, modernization will help banks to build up and out to become full-service partners with access to a complete customer picture that will enrich the customer experience and make interactions with bank
customers more successful, efficient, and profitable.
The Benefits of Modernization Will Be Clear
With the right strategy and advanced technology, banks can reduce the risk and intimidation of modernization (e.g., via platforms that are designed and architected to be composable) and gain the needed agility to make continuous personalization simpler –
all while reinventing your bank’s core infrastructure for the digital age. In the modern platform paradigm, banks can easily pivot to meet the unique challenges and opportunities that arise in the digital age – both now and well into the future.
- Formulating the right strategy will be unique to each bank, and having a trusted partner to navigate this terrain will be key.
- The ideal platform will offer a componentized architecture that can be adapted to changing market needs and technology advancements so that your institution won’t have to keep making major shifts as the market does. This is future-proofing at its best.
- A modern platform will evolve in line with your bank’s objectives and market requirements, and continuously offer up new options/solutions/partners that enable your bank to optimally profit from and embrace change. The benefits will be clear.
Banking is increasingly about participating in a real-time open ecosystem that transcends traditional boundaries and constraints. Banks can master modernization by building up and out and truly transform. This approach will enable your bank to quickly reach
new markets cost effectively and grow your customer base, with the inherent flexibility to adapt to future changes and opportunities without disruptions. Welcome to the world of modern banking.