Posted by Bethany Frank on 13 Mar 2017
The financial services industry is among the oldest, most complex, and most important consumer industries in the world. Several top financial institutions were established decades or even centuries ago, earning them a reputation for being slow, outdated organizations. With successful track records in business stretching as far back as the 1800s, however, it’s clear that banks are incredibly capable of adapting to the waves of change.
There was once a time when banks had to adjust from a long history of hand-written records to printing. Just a few decades ago, the financial services world once again adjusted to the credit card takeover. Financial institutions now find themselves in the midst of yet another transitional period as everything from payments to customer support is automated and consumers demand digital service.
Banks have also been grappling with globalization and the rise of highly complex, yet interconnected economies in recent decades. In turn, the industry is now more complicated than ever; this is only expected to increase as developing markets continue to mature and more people become financially literate. This boom in global financial activity combined with rapid advances in technology puts immense pressure on financial institutions to meet the demands of the 21st century.
As non-bank competitors like PayPal, Apple, and Amazon further challenge banks for consumer markets they once dominated, banks need to act quickly or risk permanently losing profits. Despite new players in the market, many consumers still tend to have more trust in traditional financial institutions. Banks should aim to keep the strongholds they currently have over areas like mortgage and small business lending, for example, by investing in technology that gives customers the digital experience they expect.
Despite the challenges, banks need not address the changing tides on their own. Updating legacy systems, outdated product suites, and unintegrated payment systems are major undertakings which require a great deal of technology expertise. With the right partner, banks can easily modernize money transfer services, offer customers better P2P options, and white-label or even custom-develop various financial products and services.
New times call for a different strategy. Banks risk losing market shares to innovative non-traditional players if they don’t work to upgrade technology infrastructures over the next decade. A technology partner can help banks identify and implement cost-effective and impactful solutions that deliver a truly seamless user experience. Working with a technology partner can even help banks significantly speed up the time to market by reducing reliance on internal resources.
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