5 actions to take when tech cripples financial institution competitiveness
Talking about innovation and agility is just a tease if a bank or credit union remains shackled to an inflexible core processing system that keeps it from competing with fintech rivals and financial institutions that have already broken free — or were never bound.
Who is really setting your financial institution’s strategic direction? You may think it’s top management and the board, and you may even think that the marketing function is exercising some influence through insights and design. But how much really hinges on your core processing vendor and the restraints the institution’s systems place on strategic execution?
Even today, when some new developments from outside of the usual financial sphere completely end run traditional players, institutions speak of being “fast followers.” That can be wishful thinking.
Being a fast follower is not a viable option unless the essential core issue gets addressed. Without access to data, for example, the ability to quickly (and inexpensively) test new ideas, and evolve into a consumer-driven culture, there is no “fast” when it comes to following. At worst, the results will ultimately be catastrophic.
How Financial Institutions Stay on the Bad Tech Treadmill
At any gathering of community bankers or credit union executives, conversation will inevitably turn to their core service providers, and the griping begins quickly.
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