The true costs of an outdated operating model
Why technical debt, siloed infrastructure, lack of digital talent, and outdated ways of working are slowing banks down.
70%
of digital transformation projects fail to deliver results
Is your technology causing more problems than it solves?
Here are some clues that indicate there might be room for improvement in your I.T. operations:
- Long time to market - digital transformation projects go over budget or take too long.
- Overspending on maintenance & technical debt - the majority of your IT budget goes into running and fixing existing systems.
- Over-reliance on outsourcing - you rely heavily on external help due to a lack of in-house talent and capacity to meet customer demands.
Future-proof your operations
Here are some best practices to improve your organization’s innovation capacity.
Even with the best of intentions, banks are often slowed down by complex and monolithic legacy infrastructures that they’re afraid to touch. Replacing these core systems comes at a significant cost, but solutions exist. Placing a unified engagement layer on top of your existing systems of record gives you the agility you need without having to replace the whole underlying infrastructure. Then, open your new platform to technology providers, from core to cloud, so you can leverage the power of best-in-class fintechs and keep on building. Your move: Choose a banking-specific cloud ecosystem that can unburden your IT teams from the headaches of ever-changing and complex industry-specific technology requirements.
Too many organizations try to do everything themselves and needlessly reinvent the wheel, one problem at a time. The key to success in this fast-moving, ever-changing market is to focus your resources on the experiences that really make a difference to your customers. Choose carefully what table stakes to adopt from vendors and what differentiators to build yourself. Next, consider your strengths and decide which initiatives can be managed in-house and which ones are better outsourced. Your move: Don’t get stuck in the old “build vs. buy” debate when you can have the best of both. Choose a platform that gives you the flexibility to adopt features out-of-the-box and build on top of them too.
Bank CIOs often have to deal with the multiplication of programming standards and languages, as well as a complex stack of proprietary software. This makes it extremely hard to find and retain talent with the right skill sets. As a result, banks have to rely heavily on outsourcing and turnkey solutions they have little control over. Avoid turn-key proprietary software that your teams won’t be able to touch. By choosing technologies built on open standards that support the most common programming languages, you’ll give yourself access to a bigger talent pool. Your move: Look for technology partners that give you the proper resources and services for your teams to train themselves, maintain the solution, and get the support they need.
3 reasons to reimagine your operations
- Reduce your tech debt. A McKinsey survey reported that up to 20% of the average technology budget is diverted to resolving issues related to tech debt. Fix it, and you can spend more on new products and solutions.
- Take back control. With the right platform and talent, you can reduce your dependency on vendors and outsourcing for your most critical systems.
- Accelerate. Top-performing banks release changes thousands of times per month. With the right platform, processes, and skill sets, you can be more agile and release more frequently, so you can keep up with your business expectations.
