iCreate: Banking Innovation - A Case for CaaS
Posted: 26 November 2013 | Source: Fintellix Solutions Pvt. Ltd.
It’s an established fact that the changes in banking industry are driven by fluctuating customer needs.
Moreover, the regulatory environment globally is not only undergoing immense changes, but is also unclear on several aspects, owing to varied perspectives of different regulators and governmental institutions overseeing banking operations.
Adding to this, the economic environment in the aftermath of the 2009 crises has not entirely stabilized.
Clearly, banks trying to survive through all this need to be agile, i.e. be able to respond to changes in all of these aspects, both quickly and effectively. Quickly - because otherwise, they incur steep costs, and effectively - because the competition has scaled due to consolidation (in the industry) plus the entry of non-traditional banking firms (who are not burdened by legacy hindrances).
Banks that will triumph the odds, are the ones that refocus on their core competence, i.e, serving the customers’ financial requirements in the best/quickest manner possible, irrespective of the environment or competition. The banking organization needs to be able to react efficiently in order to align well with the customers.
While banks aggressively pursue the ubiquitous ‘customer-centricity’ goal, all other activities should be operationalized and automated wherever possible, as long as there are sufficient levers to control/monitor the processes. These include Administration, IT, Compliance, Reporting, Audit, AML and Risk Management.
Business model transformation and adoption of innovative technology are two levers, which when used in the right blend, can enable banks to achieve their goals faster in a difficult environment.