The banking industry is getting comfortable with a faster pace of innovation, using data and analytics, and offering more innovative ways and means for customers to interact with the banking system. The global banking sector is now more strategically focused and technologically advanced and is able to respond to consumer demands and expectations, while defending market share against an array of competitors.
A great deal of emphasis is on digitizing core business processes and reassessing organizational structures and internal talent to be better prepared for the future of banking. This transformation is being caused by the increasing desire for traditional banks to become a ‘digital bank’.
The importance of innovation and developing new solutions that take advantage of data, advanced analytics, digital technologies and new delivery platforms has never been more important. We are seeing leading banks spend significant efforts and budgets on innovative ways to target, expand services, re-configure delivery channels, integrate payments and applying blockchain technology.
These efforts are only expected to increase in 2019, as global financial and tech giants transform the financial services arena. As part of these mega-trends, banks will also experiment with new mobile applications and voice-enabled gadgets to enhance both delivery and contextual personalization. As technologies continue to evolve, the consumer will be at the center of all this storm and the banking sector will continue to accelerate its investments in innovation and digital enhancements.
Partnering for Innovation
However, it is important for companies, not to undertake innovation efforts in isolation. Instead, they need to network with the right technology partners to develop effective strategies for innovation. Infact, even if you are an established enterprise or a startup, you will still have to partner with other companies for better results on the innovation front.
Specialized service providers can help established enterprises move quickly towards a level they can imagine. Enterprises can certainly get somewhere on their own, but it will be a much longer journey due to skill gaps and several bureaucratic issues involved. So, an enterprise and a specialized technology service provider need to partner together to provide greater momentum to the innovation requirements.
Finding the Right Technology Partner
To drive innovation, it is important to partner with the right technology partner, someone who can drive momentum in your innovation programs and manage the transformation seamlessly. Finding the right technology partner for your business is crucial. What are the qualities then, that you need to look for in your technology partner, who can help you in your innovation initiatives? Here are some of the primary things to consider when finding the right technology partner.
Access to a Wider Technology Spectrum of Skills
Technology is moving faster than we can imagine and businesses need to update themselves constantly to stay in the race. Automation, internet of things (IoT), AI, VR are all making businesses grow. The future of banking may or may not include branches, but it most certainly will include some level of artificial intelligence (AI), the Internet of Things (IoT) and virtual reality (VR). The ability to provide market insights and advisory services leveraging artificial intelligence (robo-advising) is already a reality. An artificial intelligence system similar to Apple’s Siri is already being used to provide basic transactional support. The ability to recommend the payment of an upcoming bill or to warn about a potential overdraft is also a reality at the best of digital banks. Advanced customer insights are the foundation of this trend. Your Technology partner should be involved in continuously building and upgrading their technical skills in line with the market demands. Moreover, they should have access to the right skills that can help drive your innovation programs efficiently.
Deep Understanding of the Business
A partner in innovation initiatives cannot merely play the role of a technology consultant. They should be someone with a deep understanding of your business. Innovation does not really have specific, concrete problems to solve. It’s more about exploring different ideas. So you do not need a vendor who can just solve technical issues for you. You need a partner who has as much expertise in the business as you.
Strong Program Management Skills
Your partner needs to have superior program management skills so that they can manage ongoing projects efficiently. They may have to individually manage projects and see to it that they come in under budget and fit into appropriate deadlines. This naturally requires broader scale program management and a proper understanding of how these projects work.
Clear Communication and Governance Framework
Co-innovating with an ecosystem of partners works better but only if there is enough focus on communication. Clear, consistent and candid communication is a must in any partnership. Governance can be looked at as a management system that balances trust and control. There has to be a clear framework about the key elements of business. This includes managing risk since innovation necessarily involves risk and there must be clarity on aspects such as organisational risk tolerance. Also, there should be enough focus on developing capabilities and allocating resources after assessing truly innovative initiatives.
Trust and Commitment
Can you trust your partner to deliver? Will they do what they say they’re going to do? It is possible that they may have the best of intentions, but some partners still can’t always be counted on. They have to reliable enough that you can depend on them.
Flexibility is the ability to change and adapt if the external business climate changes. Or it could be a case where things just aren’t working and you need to try something new. Is your partner flexible enough to handle this?
Your Technology partner needs to be positioned to meet your growing requirements, so it’s important that you look not only at their current capability, but also at their ability to scale. Just as you need time to ramp up skills and staff, your technology partner needs time to react to your needs. It’s very unlikely that they’ll have a “bench” filled with resources ready on demand. Partnering means sharing your strategy and goals (without compromising your corporate mission) as much as possible. They in turn will be able to respond to your needs and share in the delivery of your goals and in meeting any urgent deliveries or critical solutions.
Adopting a new model of global innovation may not be easy, but for banking and financial institutions, it is becoming almost a mandatory business practice. In order to future-proof innovation, banks need to embrace change and leverage new opportunities. Those that do will realize that a globally integrated approach to innovation is more rewarding and highly effective. Finding the right technology partner will increase your efficiency and at the same time help in reducing costs.
Learn why enterprises & startups alike, hire QuadLogix as their technology partner. We offer you a FREE consultation where our in-house experts will help answer all your concerns & queries as well as offer valuable insights.
QuadLogix is an IT Consulting, Software & App Development organization delivering end to end IT solutions to Enterprises across the globe. Our deep expertise in Technology, our varied experience across multiple industries and our well designed software best practices makes us the preferred IT consultants & development partners for businesses across the globe.
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