The future of banking: What does a transformed industry look like?

Political turbulence, economic instability, and the aftermath of the pandemic have contributed to the financial services industry facing more challenges than ever before—without adequate time, resources, or budget to best handle them.     

When so much is expected from an industry working under great pressure, it’s crucial to focus on what we can control and improve what we can improve. To accomplish this, business agility is key. 

In order to quickly adapt to future challenges, banking organisations must be equipped with technology that allows them to swiftly react to change. So, how do we in the industry ensure we’re meeting the needs of consumers, and what should a transformed banking industry look like?  

I recently attended a roundtable with leading industry experts to discuss what we should be doing to embrace the transformation of the banking industry and get ahead during unpredictable times. Here are the key takeaways from the session: 

Using technology to stay adaptable 

In our ever-changing landscape, it’s nearly impossible to predict what’s coming next. What’s more, customer demands are greater than ever. The people using banking services expect a wealth of choice and convenience. This is why the financial services industry must be prepared for anything.   

A recent Gartner report confirms this: “We are in a time of indefinite volatility, making it difficult for banks to plan for a definite future.” It adds, “Mastering business composability prepares CIOs to maximise business value regardless of ongoing uncertainty.”  

Composability, put simply, is a system design principle that deals with standardised system components rather than the whole infrastructure at once.  

Reaching your customers where they are 

In our increasingly digital landscape, banks must reach their customers where they are, whether online, on a specific digital platform, or in the metaverse. The organisations that have multiple, seamless touchpoints with customers will thrive in the future.  

By planning for this now, companies will be better prepared with suitable, adaptable technology that allows them to better engage with their customers and to adapt and pivot as the landscape requires. 

Learning from banks and other organisations

Being prepared for the future means being prepared to think differently about your business. Challenger banks and other financial technology organisations have already had a lasting impact on the industry. 

In order for legacy companies to compete, they must learn from these organisations and collaborate with them where possible. In partnering with fintech organisations, experts in the field, and new profit pools, banks can retire outdated legacy plans and make way for bold thinking and agility. 

Building for the future  

All too often, we see banks and other financial service organisations weighed down by legacy technology that doesn’t allow for quick change—a vital component of any successful business.   

To combat this, we must continue to innovate and replace—or at the very least modernise—this technology, allowing for new processes, updated systems, and rapid pivots where necessary.   

Building infrastructure that provides a better, more agile future for the banking sector requires a new way of thinking, one that’s composable. By creating smaller, simpler “building blocks” of architecture, we can apply them to any system—even legacy systems.   

This can help financial service organisations prepare for the future. In doing so, we can adapt and evolve our infrastructure as needed.   

Visit our Financial Services Operations page to find out how ServiceNow can accelerate digital transformation and improve experiences in your organisation.

© 2022 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.