I recently penned a whitepaper entitled, “Unlocking the hidden value in financial institutions”. The paper’s central message is that having modern core business systems is vital to creating sustainable competitive advantage in today’s fast-changing business environment. I have been reflecting on the relationship between technology innovation and business advantage for decades now; it’s a subject that I’m passionate about.
Most financial institutions struggle with the tension between the need for rapid change and the inflexibility of their highly complex IT environments. The pressures on such institutions are immense: new competitors are entering the market unencumbered by legacy systems, customer expectations are rising driven by consumer IT experience and regulators are making ever greater demands for transparency and efficiency.
Financial institutions need to take bold action to respond to these pressures or they risk being marginalised. We have clear evidence that the banks understand the need for action, with three of the top five Australian banks currently replacing their core retail banking systems.
The market leaders in banking are investing in new technology; the time has now come for wealth management players to follow suit. The best IT solutions provide real business agility by enhancing simplicity rather than adding further layers of complexity. It’s this tight relationship between agility and simplicity that drives the need for bold change, rather than just applying another bolt-on or band aid solution.
Modern core systems, based on Internet technology, enable financial services providers to deliver greater value to clients through improved customer service and the creation of products and services that better suit client needs. Such systems are robust, secure and cost effective, while also being scalable, flexible and agile to change with the speed of business.
As wealth managers seek every advantage in an increasingly competitive landscape, it is time to invest in modern core systems and unlock hidden strategic business value.
To read the full whitepaper click here.
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