Tabula Rasa

Obviously, the future of banks is technology. Banks have to become high-tech companies as much as or probably even more than any other institution of our age. All-embracing big data applications, AI and deep learning systems, predictive analytics, identity recognition tools as well as augmented or virtual realities will change the face of society, the business world and of course the banking experience drastically. It will redefine how we deal with our affairs, how we manage our finances, our customers and our time.

Everyone agrees on this, but reality shows only few are vaguely acting on it. Agreed, we are not there yet. But we are most definitely on the way – regardless of whether we want to acknowledge it or not. The pivotal implications of this development however lie, as usual, beyond statements of platitude. What are the next generation of challenges and opportunities with these technologies –  with the whole system? and what are the hidden leverages to apply for a successful future?

One of the main points of action is technical debt. Technical debt is the black cloud over the bright high-tech future. Our institutions – especially big and cumbersome banks – have accumulated a huge amount of technical debt. The fact that we keep on building on top of outdated, insecure, cumbersome and often straight out flawed IT systems does not only hurt the mission of banks and its operation directly it also inflates costs exponentially.
There is the need for a tabula rasa. A technical debt extermination. A reset. However, this goes along with considerable investment and a management that is not only decisive, has a clear vision but takes risks and prioritizes long-term resilience and prosperity over short term stability.

In the face of new competition and players that are either much more proficient in tech, more agile or both, banks need to find the courage to actively step into the future with their IT systems and technological approaches.
Patching up old technologies will be the gallows banks will be dangling from, when the interest payed will far exceed the current investment to rebuild – bankrupting the banks of their future and their potential for yet unexplored business opportunities.

Don’t wait for your technological execution. Get a technical debt exterminator, build long-term goals and visions on a clean slate to ensure your future.

Yours, Julia

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