Traditional financial institutions spend billions on technology every year and are always under the spotlight for innovation. Currently, they are in a race to go digital, with new technology-driven competitors "eating", or more accurately "pinching", their share of the market.
But the Covid-19 pandemic increased the intensity of focus on financial institutions as customer demands changed overnight. As a result, the digital transformation these institutions were undergoing accelerated.
Customers, for example, expect more from banks than ever before because they see what the new technology-oriented financial institutions can offer and know that the big banks can do the same.
One thing is certain - traditional financial institutions need to be alert and are accelerating their digital transformation.
The move to the public cloud is perhaps the most obvious sign that banks are making root and branch changes. Reference IT providers, mentioned as potential competitors to banks, are today running the banks' engines in their public clouds.
As a result of the rapid pace of change and the need for a new set of skills, financial institutions are increasingly relying on IT providers to support them.
Close relationships are developing, with the combined expertise of technology providers and banks essential for success.
Traditional IT operations in banks are therefore changing. As a result, despite the digital transformation, financial companies are actually downsizing their IT departments to cut costs.
Why have an expensive team keeping the lights on when a supplier can do it at a lower cost, leaving you time to participate in more profitable IT activities.
CIOs must align with business leaders as financial institutions emerge from the coronavirus crisis
Financial services CIOs acted quickly to respond to the immediate impact of the Covid-19 pandemic, addressing the needs of their teams as they moved to remote working or, for employees deemed \'essential\', ensuring they had the right equipment and physical space.
Now, in order to restart successfully and emerge from this crisis, it is essential that these CIOs align their next steps with the business executive leadership strategy.
Gartner said that CIOs need to engage early and often to avoid differences of opinion, which can paralyze investments.
Fixing what's broken will always be a short-term priority for CIOs, but planning ahead, although more difficult in times of uncertainty, is key to ensuring the future success of the organization.
In practice, financial institutions should create a structure to gather business imperatives on a regular basis, both through direct conversations with business leaders and line-of-business stakeholders, and through coordinated planning sessions and documents.
One thing that CIOs and business leaders at financial institutions agree on is that automation is a priority. Both business leaders and CIOs show a common interest in automation technologies, so it's clear that this area will be a key priority for financial services organizations post-Covid-19.
The Gartner survey found that more than half of financial institution CIOs plan to invest in automation technology.
Digital transformation a key success factor for post-pandemic organizations
Digital transformation is made up of all digital tools being used to their full extent in organizations. The approach goes far beyond acquiring the right platforms and encompasses a general cultural change to become a digital organization.
In fact, digital transformation in financial institutions requires integrating digital tools into all layers of the organization, rather than adding them later.
Without a successful digital transformation, companies run the risk of their employees becoming overwhelmed by the large number of digital tools and platforms they have to manage, creating friction between employees and managers, difficulty in recruiting new hires and confusion about which tool to use and when.
As a result, financial institutions can see productivity and employee engagement drop dramatically and impact on their bottom line.
Without digital transformation, there is a real risk that new digital financial services will drive customers away rather than attract and retain them. Many consumers are unfamiliar with digital processes, payments and portals and are struggling to get to grips with them.
Patience and goodwill are already in short supply thanks to the stress of the pandemic, so no one is willing to invest extra effort in figuring out how to use a confusing digital tool.
Digital transformation helps to easily integrate customers into new digital platforms, replacing friction and frustration with pleasure.
Contact the experts at Conversys now and find out about Aruba Networks' security, network management and connectivity solutions. We're on hand to help you overcome new challenges.
About Conversys
Conversys IT Solutions is a provider of Information and Communication Technology services and solutions operating throughout Brazil.
With a highly qualified technical and commercial team and a network of partners that includes the main global technology manufacturers, Conversys IT Solutions is able to deliver customized IT and Telecom Infrastructure solutions to clients.
We invest in our employees and partners and strive for a long-lasting relationship with our clients, because we believe that this is how we gain the skills and knowledge we need to innovate and generate value for the businesses in which we operate.
