Posted by Wayne Brown on 30 Dec 2015
Banking and technology go hand-in-hand these days. Many top banks have been investing heavily in innovation labs, tech experts, and other resources to deliver next-generation financial technology products to market. However, banks sometimes struggle to address technology needs entirely on their own due to size, magnitude, or a lack of the necessary expertise.
One of the biggest considerations in regards to developing technology is speed to market. As technology becomes more prominent in banking, some financial institutions seek to break away from a reputation for slow progress. Banks not only need to develop highly secure technological solutions that can successfully serve customers with diverse needs, but also deliver and implement these solutions at a pace rapid enough to remain competitive.
Silos are another challenge banks are encountering in their attempts to modernize services and operations. As technology developed over the years, banks have ended up utilizing an assortment of technology products that often fail to work harmoniously with one another. These disparate systems are leading to significant organizational and administrative challenges within the banking ecosystem. A technology partner could help banks make sense of these silos and either restructure or develop new technological infrastructure to help carry established financial institutions into the modern age.
As market demands increase, many banks are finding they need more comprehensive technology support. While some banks are investing in innovation labs and in-house financial technology accelerators, others are taking a more eclectic approach by having internal teams work together with specialized financial technology companies to achieve mutually beneficial business objectives. For some banks, outsourcing technology services entirely is the most cost-effective solution. Regardless of scope, working with a partner fully immersed in technology provides banks with an access to an entire arsenal of expertise and opens doors to innovations the banks may not have considered on their own.
High security is paramount to financial technology, especially as public concern over cyber and financial crime continues to rise. A technology partner can help fill the gaps in a bank’s internal resources, and equip it with the expertise and finesse required for a particularly high-risk undertaking. The right technology partner can ensure the developed solutions are innovative and user-friendly, as well as secure and compliant with all applicable regulations. Because development and deployment of technology solutions requires a heavy lift in terms of resources, banks may feel more comfortable working with a partner that has both the bandwidth to deliver high-quality technology solutions to market and a proven track record of doing so.
Because financial technology companies offer services to industries as a whole, they have a unique vantage point unavailable to any individual bank, allowing them to design the most apt solutions for their clients. It could take an internal team several months to research an issue and determine the best solution for it; on the other hand, technology companies are poised to quickly offer a diverse array of potential solutions that can be customized for any sector or function.
With a trusted technology partner, banks can capitalize on a bird’s eye view into the industry, expertise in security and compliance, and accelerated product delivery. An astute technology partner can be instrumental in helping a bank generate new revenues and achieve its financial technology goals quickly and efficiently. For banks, aligning with a partner that offers strategic, cost-effective technology solutions and support is an intelligent investment as competition within the industry continues to stiffen.