In recent years it seemed the smart money was on FinTechs blowing the traditional banking powerhouses out of the water. But the banks have survived, and intend to fight back.
Over recent decades, cost-reduction programmes have formed the banks’ first line of defence. But these methods can only take you so far if the competition is out-innovating you.
To compete effectively requires speed. Traditionally, banks have never made decisions quickly – for good, logical reasons – focusing instead on stability. The challenge for banks is to achieve speed without losing their characteristic stability.
FinTechs are essentially IT companies that apply their skills to the financial services market – there is no distinction between IT and business operations. Banks are beginning to adopt the same mindset, and this has been the catalyst to regain ground from the FinTechs.
Leading banks are gradually recognising the value of their IT teams, and the central role they can play in today’s data-driven landscape. Business and IT leadership teams have realised their goals are one and the same. To tackle the growing threat of the FinTechs, banks are now utilising their in-house software expertise as a key asset.
And banks enjoy deep, deep IT expertise, a critical component of success. By focusing on digital innovation and speed of delivery, banks can make faster decisions and innovate at scale and pace.
Here at Virtusa, we are developing new techniques to industrialize the digital revolution, making it possible to transform IT productivity and accelerate speed to market.
For more details, see our White Paper.