Brand, Campaigns & Content March 04, 2015
How digital can improve Finance organisations' cost income ratios
When it comes to digital transformation, financial organisations are currently lagging behind other sectors, such as manufacturing, which has been revolutionised by the uptake of business process optimisation and automation.
Simpliflying business processes
To achieve sector-wide improvements in productivity, finance organisations must embrace the changes already seen in other industries, starting with simplified business processes and operating models.
Streamlined to reflect customer needs, these models must include digitised processes and strategic sourcing.
Tackling legacy systems
The largest challenge in achieving this, is overcoming the fragmented legacy technology that many organisations have, which hinder the ability to scale services through self-service channels.
De-coupling legacy architecture and compliance would remove the restrictions to flexible client servicing, and the standardisation of components and features would enable organisations to reduce operational costs, whilst creating a platform for process automation
- Enabling the delivery of cross-product functions as services, in a similar way to car manufacturers that use a single component to deliver multiple models.
- De-coupling the application layer of product, compliance and generic business services would reduce the impact that compliance and regulation has on ‘customer need’ product development.
- Corporate services currently lag behind retail services in regards to self-service and customer experience.
- Economies of scale can be improved by utilising technology partners and standard software products to integrate and improve legacy systems, to help innovate and differentiate service delivery.
The size of the challenges that many institutions face cannot be resolved through minor tactical changes to their business model. A much greater focus is needed on increasing capital and reducing operational costs – both of which can be greatly aided by moving towards becoming a digital enterprise.