Banks today harvest and analyse massive amounts of data – but imagine what could be done with this data if banks weren’t so preoccupied with banking.
To put it another way, all banks employ talented software engineers, and those engineers are able to develop applications for any market. Banks’ IT teams could easily create insurance or wealth management applications, or branch into new sectors such as healthcare or instant messaging.
We’re already seeing new types of banks and FinTechs spring up in response to today’s social landscape. All-digital, branchless banks rely entirely on the phenomenon of the mobile app and the preference for email and avatar communications. These services were created by forward-thinkers and digital engineers who simply considered what customers might want.
Could we see banks generating entirely new revenue streams? Banks have the business skills, the market insights and the customer data. Banking is already moving away from its traditional processes and embracing digital change. For example, automation is quickly diminishing the role of staff in ledger-based banking – soon running banks will be less important than reacting quickly to the latest digital must-have.
If IT teams can learn to innovate at speed and scale, perhaps banking will become just one revenue stream out of many. A new ‘bank’ would be a core of business leaders and digital engineers, creating new services and revenue streams. Digital engineering has the potential to revolutionise financial institutions.
Here at Virtusa, we are developing new techniques to industrialize the digital revolution, making it possible to transform IT productivity and enable these new ways of thinking.
For more details, check our Whitepaper.