Today’s consumers want the same level of experiences they get from financial institutions as they get from BigTechs like Amazon and Google. The reality, however, is that most financial institutions do not currently offer this level of experience, meaning that, when BigTechs start delivering banking services, financial institutions may well be in trouble. Here are 5 competitive strategies to help them face the BigTech threat:
- Minimize negative impacts from legacy systems – legacy systems impede information flows. As completely replacing them is unlikely in the near future, financial institutions should focus on choosing an information management solution that offers a flexible, adaptable framework capable of communicating with both legacy systems and leading-edge technologies.
- Get full visibility across content silos – finding necessary information is time-consuming and challenging when it is fragmented across multiple units and systems. A solution that allows for data to be gathered regardless of where is resides is imperative to increasing data usability without disrupting how teams get work done.
- Think smaller – financial institutions face increasing demands for faster, easier interactions, all while still using slow-to-change, clunky monolithic platform systems. They can, however, become competitive by adopting digital-first models that leave single-vendor solutions behind in favor of adaptable component architectures.
- Tame information chaos – analytics are key to unlocking the value of data. Using an information platform to manage data allows not only for data to be easily visible, it also allows for data to be analyzed and visualized for more informed decision-making.
- Prioritize scalability – many systems that financial institutions use are not capable of scaling to accommodate the rate of growth they are (or will) experience. They should use scalability as a primary vendor selection criterion.