The speed of innovation is driving the future of the financial services industry. Today’s consumer wants the same level of customer experience from their banks that they get from BigTech companies like Amazon and Google.
But that is not the reality for most, and the result is customer dissatisfaction that leaves the banking industry wide open to disruption.
Disruption from BigTech is a clear and present danger to banks that stay locked into past modes of thinking in everything from customer experience to systems architecture.
For financial services veterans to compete with agile, idea-led newcomers; preparation and a forward-looking strategy will be required that embodies the experience delivered by BigTech – with information rich touch points along the entire path of the customer journey.
Nuxeo, a global content management company, recently surveyed 100 financial services institutions to determine the biggest challenges with their current information systems.
In this guide, you’ll discover which modernization struggles are most common across the financial services industry as you discover how to navigate technology challenges while avoiding common, costly pitfalls.
Nuxeo presents five strategies that banks can implement to stay competitive, reduce total cost of operation [TCO], and increase return on investment [ROI]. These include the following:
Strategy #1: Minimize negative impacts from legacy systems
Challenge: Legacy burden
The cost of maintaining older systems is a reality banks have lived with for decades. Whether it’s due to point solutions, M&A activity, or simple longevity, the price of the past can be hazardous to the future.
Strategy: Choose digital, modern solutions with enough flexibility to work with the technologies of yesterday, today, and tomorrow.
Strategy #2: Get full visibility across content silos
Challenge: Finding information is challenging and time-consuming when it is fragmented across multiple business units, systems of record, and navigation trees. But the traditional rip-and-replace solution to this challenge is expensive, risky and can require major changes to existing workflows and user interface. In short, it rarely produces the desired results.
Strategy: Manage information with a solution that allows you to connect to it regardless of where it resides giving you visibility into your entire information structure without disrupting the way your teams get work done.
Strategy #3: Think small
Challenge: In a customer-centric digital age, banks find themselves subjected to rapidly rising consumer demand for faster, easier interactions – while using slow-to-change, clunky monolithic platform systems that can’t keep up.
Strategy: Get competitive with digital-first models that leave single-vendor solutions behind in favour of adaptable component architectures to deliver services individually.
Strategy #4: Tame information chaos for a competitive edge
Challenge: Analytics are important to unlocking the business value of data -but because banks have information in many systems that rarely communicate, they face long wait for business intelligence requests, which quickly become too costly to allow for comprehensive analytics.
Strategy: Use an information platform that does double duty, allowing you to go beyond managing information with fully-tracked data ready to be visualized and analyzed to provide maximum insight with minimum hassle
Strategy #5: Prioritize scalability for future growth
Challenge: Information – also known as content and data – are related in increasingly complex ways, combining to create exponentially more information – and many systems can’t scale to accommodate the rate of growth.
Strategy: When you use scalability as a primary vendor selection criterion, your information platform can become your secret weapon when competitors hit the limits of their ability to perform.