For many traditional financial institutions they have never had to truly compete. There used to be a small number of players with a huge market audience. This is no longer the case – technology has enabled challengers.
Challenger banks such as Monzo and Atom, are digitally enabled organisations which can supply customers with improved CX, faster services and personalised products, making them the first pick of digitally native 21st Century customers.
To fight this, traditional financial institutions are having to digitally transform, however this leads to further problems. The first being scalability. Financial Institutions are innovating but struggle to scale out and provide the masses with the higher and richer levels promised through innovation. The second problem is linking new innovation to core banking systems, enabling them to be leveraged and scaled fully – this is typically because Financial Institutions have great complexity in existing systems and operations, making it costly and tricky to change.
In this instance, as an IT vendor you should consider how you build your story around how systems and technology help to manage, understand and support transformation in the complex legacy world and the new agile world. By combining the two worlds you can create complete end-to-end solutions which financial institutions can deploy quickly and scale up, giving them a chance to improve, progress and compete.
For more insight on how to think like bank download our insight report ‘Thinking like a global Financial Institution – for innovative tech providers’