The fact that the rise in profits of 18% for Barclays has been achieved through the extensive cost cutting within the business is quoted widely as a issue by many parts of the press. I disagree with this. When investment banking activities are under such pressure, and retail activity is challenging, the fact that Barclays is taking extensive steps to ensure the stability of the business is good news. I am finding this across the board, most banks are just treading water and their normal financial engine room, the investment arm, is creating negligible returns.

Added to this are the challenging interest income conditions most banks find themselves in. Ultimately Banks generally have two options available to them to maintain growth and profitability: 1. Cut costs – à la Barclays, or 2. Increase the profitability of existing customers. Whilst I understand number one, I am more of a fan of number 2. The challenge here lays with the issue of selling an extended range regulated products through every channel, compliantly, in a tight market. 

Believe it or not, this is actually a quite anachronistic view of what is possible. Banks and other financial institutions can effectively ensure all regulated products are available via every staff member, and every channel to market. This will have the net effect of increasing non-interest income, which is where Banks are experiencing some growth at the moment. 

But this is slow. So what is stopping this revolution in thinking and business? Two things.

Firstly it is widely considered that the only effective way of getting staff to compliantly sell products is weeks of training. This is not the case. Using the correct software across all channels, one which can intuitively understand client needs and deliver, regardless of channel, a compliant and satisfying experience, is very much available. 

Secondly it is considered that existing investments in technology can cover off this requirement, and that any new technology will cause more issues, leading to more cost . This is a position which is open to challenge. 

A new way of thinking about how the end customer is engaged requires a new way of thinking about how to deliver this using technology. The technology required is a “Customer Oriented” software, not a “Business” or “Technology Oriented” one. The technology deployed, and how it is delivered, is more concerned with the end user experience than it is with architectures or boxes on a diagram. It is safe to say that most technologies are compatible (ish!) these days, it is just the amount of spannering required to integrate them which is different. Whether a new fit for purpose application is purchased, or existing technologies deployed, the result is the same – more spannering. Of more importance is whether this technology can deliver the three crucial ingredients for Banks – enhanced sales, customer delight, and lower costs. Hence “Customer Oriented”.