Last time, we discussed how we surveyed 95 middle- and senior-level managers in order to learn about the impact of digital transformation on the financial services industry. One big surprise was only 60% of survey respondents reported that their organizations are working towards implementing new digital technologies. So, in part two of this three-part series, we will explore what specifically is holding digital transformation back within fintech, and dive into one of the biggest challenges facing financial services organizations.
We began by asking the survey respondents about what roadblocks their organizations have encountered when looking to implement new technologies, and they agreed on three primary challenges: legacy technology and infrastructure (31.6%), a lack of enthusiasm and support for change (33.7%) and a lack of in-house technical skill (29.5%).
Having worked with numerous global brands on digital transformation projects, we know that these obstacles are all too familiar. Fortunately, we can help bring a greater understanding of the problem at hand in order to help organizations overcome these roadblocks—starting with challenge #1.
More than half of respondents (50.5%) reported their company’s existing technology is holding them back from new innovations.
51% BELIEVE THEIR EXISTING TECHNOLOGY IS HOLDING THEM BACK.
This is a problem that we’ve found to be particularly noticeable in well-established financial services companies that have been gradually architecting on the back-end. The challenge here is figuring out how to work with existing hardware and software, or how to phase it out with a realistic approach, timeline and budget—all without disrupting the customer experience.
Also known as technical debt, this issue is fairly common within the financial services industry (and several other industries, for that matter). Established players rapidly bring in new technologies through acquisitions and mergers, which isn’t sustainable and doesn’t scale well. Coming and going executives and tech talent create additional complexity on top of that. Digging out of technical debt—though not as exciting as creating something new—is essential for building a technology-savvy business that survives long-term. Some strategies to help you dig out of technical debt can include the application of a microservices platform, as well as a thorough inventory of current and future state architecture, and complete alignment of stakeholders, before launching a new technology initiative.
In our next post, we will discuss the two other digital transformation challenges that stood out in our survey results for the final post in our three-part “Path to Fintech” blog series. We also encourage you to entire download the complete, 13-page report to learn about our findings more in-depth.
Our team is always on hand to discuss your digital transformation goals and obstacles. Reach out to us and we’d love to help get you started on your journey.
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