10:29 pm - Monday December 18, 2017

Banks’ need for financial technology

Instead, they will need ‘financial’ technology.

I was motivated to reinforce this theme after going through Chris Skinner’s latest blog “Why most banks’ technology fails to meet the business needs”.

I have been sharing my thoughts on banks, technology and financial technology on a number of occasions through various forums. Particularly my earlier blog posts in this Community are relevant.

– Who can deliver tomorrow’s technology today?
– Some key questions for financial technology players
– Think Different::New business model for financial technology players
– Application consolidation may be the panacea for the BFSI sector today

There are two types of technology players in the market place to cater to the needs of Banking and Financial Services Industry. They are pure ‘Financial Technology players’ and the other ‘Generic Technology players’. FT players by virtue of their hold on the BFSI domain will be in an advantageous position to understand the financial landscape and virtually can architect the financial model for the line of business under service. They will then get into a discussion mode with their customers to identify and understand exact functional requirements and characteristics. Therefore, FT players can deliver a higher value to the customer when compared with a GT players who will expect the customers to spell out what they wants

Full-fledged financial technology players will deal exclusively in BFSI vertical only. They normally engage successful bankers, financial services and insurance specialists in their business model. Such FT players make efforts to create reusable assets and facilitators and extensively use them in the deliverables so as to reduce overall cost for their BFSI customers. They willingly provide thought leadership in the market place. They will also make specific and focused endeavors and investments on a continuous basis in knowledge management. They will work on functional models and business process facilitators and openly share them with a view to provide competitive advantage to their BFSI customers.”

Successful banks have been engaging and entering into strategic contractual agreements and arrangements only with such capable financial technology players with proven track record to reap double advantages of volume benefits and assured quality.”

Financial technology alone can optimize performance management and cost containment to stay ahead.”

We have now zeroed in on the answer to the question – Why most banks’ technology fails to meet the business needs? Because they have not gone in for financial technology.

To succeed bankers need no more mere technology. They will need financial technology.

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