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In a shifting business landscape now supercharged by cloud-based technologies and a pervasive switch in consumer behavior that demands frictionless experiences, one thing is certain. Every industry is chasing the increased efficiencies and customer engagement that comes from mobile-first and app-led services. And if they’re not, they will be soon. That’s especially true as the country and institutions face economic uncertainty that will drive even greater needs for efficiency and cost-saving measures.
For financial organizations, almost a century old and still entrenched in branch-based banking and facing an existential threat from FinTechs, the urgency to accelerate digital transformation is acute. But how should leaders reframe and integrate tech within their organizations for maximum efficiency, long-term value and customer demands? And what role must the chief information officer (CIO) now play, when almost every product and business process is experienced through technology? Let’s take a closer look at just what’s changing, why, and the steps financial services organizations must now take to change mindsets and increase relevancy for the future.
The democratization of tech throughout the organization
Instead of siloed “IT departments” maintaining control of a company’s tech needs and CIOs being graded by their “span of control” and budgets, that day-to-day functionality has now passed to business unit leads, who are more and more being referred to as “chief product officer” or mini-CEOs of their businesses. A good example would be the shift to product-centric organizational model seen recently at one of the country’s largest multinational investment banks. The transition from a functional organization to a fully vertically integrated profit and loss (P&L) model doesn’t happen overnight and must follow a phased approach. During the evolution, most organizations will develop stronger intake processes between business and technology and improve both their product portfolio rationalization process and agile funding process.