Banking Challenges faced by Bank CIOs:
The year 2021 began with major changes in the banking sector. From bank mergers to the liquidity crisis and from low credit demand to major insolvencies. Bankers are experiencing many changes and challenges during this Covid19 pandemic.
Responsible CIOs – Banking CIOs need digital transformations from start to finish, according to a recent BCG report.
As technological evolution accelerates, this is a major challenge for the IT department. Current CIOs and IT leaders of banks must identify and prepare for these challenges if they are to remain competitive for years to come. What challenges can we expect in 2021?
Here we look at the top 8 challenges facing bank CIOs and how can these bank CIOs survive the FinTech disruption?
• Consumer safety and privacy management: Consumer safety, risk management and privacy are at the top of the list of topics that CIOs are considering due to the increasing speed with which threats evolve.
• Compliance with government and industry regulations:
The banking sector must comply with many governments and industry regulations. CIOs must regularly comply and comply with new regulations. CIOs in particular have been paying attention to the Banking Secrecy Act (BSA), the AVG, and the enforcement of money laundering for many years.
Data silos: According to a survey of finance executives, including many CIOs and CTOs, departmental collaboration is the biggest challenge. Therefore, leaders feel the need to provide an integrated user experience with a global channel to their customers. However, 56% of respondents said that access to IT resources is an obstacle, while 46% said that different business units have different parts of the customer lifecycle, but the biggest obstacle is to complete the entire life cycle.
• Find and retain talent with modern skills:
According to a Forrester study, only 16% of companies have the right skills than 75% of companies with a digital strategy. In another survey, it found that nearly 93% of CIOs face a major challenge in bridging the skills gap while keeping pace with developing technology trends. Due to the disruption caused by emerging technologies (e.g. intelligent process automation, robotics, artificial intelligence, cloud, new age business process management packages), CIOs must take the lead in sales management. This will help build internal skills and capabilities, create an iterative ecosystem for suppliers, and foster innovation and growth.
• Connect to decentralized software:
Cloud computing was the next big thing. But the problem was slow acceptance due to security concerns. It hasn’t grown as fast as industry pundits predicted. But the scenario has completely changed in the present. Today, there is a growing need for cloud and SaaS offerings. Instead of buying one-size-fits-all, businesses choose SaaS offerings that cater to specific functions. As a result, the CIO’s focus shifts to integrating diverse software applications across the enterprise into a coherent system.
• Bringing the old with the new:
According to a Gartner report, 82% of CEOs have a digital transformation or initiative, and 77% plan to invest more in digital capabilities. However, combining legacy technologies with modern technology without compromising functionality or security is becoming a growing challenge for CIOs on their digital transformation journey. Banks are also facing the challenge of new players such as FinTech. Banks can compete with them or work with a better digital offering.
Managing innovation with emerging technology:
With the growing disruption of financial services, CIOs must plan what they need to offer in the near future to keep up or beat the competition. The need to introduce new and emerging technologies and systems that can better serve and optimize the customer experience is now important to maintaining the long-term profitability of the business.