Banking Challenges faced by Bank CIOs in 2021:
The year 2021 started with major changes in the banking sector. From bank mergers to liquidity crises, from low credit demand to serious insolvencies. Bankers are experiencing many changes and challenges during this Covid19 pandemic.
Executive CIOs According to a recent BCG report, banking CIOs must make digital transformations to stay ahead.
As technological evolution accelerates, this is the biggest challenge for the IT department. Today’s CIOs and IT leaders in the banking sector must identify and prepare for these challenges in hopes of remaining competitive in the years to come. What challenges can we expect in 2021?
Here we examine the top 8 challenges banking CIOs face and how can these banking CIOs survive the FinTech disruption?
• Data security and privacy management:
Consumer security, risk management, and privacy are at the top of the list of concerns CIOs consider given the increasing speed at which threats develop.
Government and industry regulatory compliance:
The banking industry must comply with a variety of government and industry regulations. CIOs often have to deal with and comply with new regulations. ‘The Banking Secrecy Act, BSA, AVG, and the enforcement of money laundering have received a lot of attention from CIOs in particular for years.
According to a survey of finance executives, including many CIOs and CTOs, a collaboration between departments is the biggest challenge. Therefore, leaders are realizing that they need to provide their customers with an integrated omnakanal user experience. However, 56% of respondents said access to IT resources is an obstacle, while 46% said different business units have different parts of the customer lifecycle and the main obstacle is full access to the customer lifecycle. ‘
Fostering innovation with emerging technologies:
With the proliferation of operational disruptions in financial services, CIOs must plan what to offer in the near future to stay ahead of the competition or outperform. The need to implement new and emerging technologies and systems that can better serve and optimize the customer experience is now paramount to maintaining long-term profitability.
Find and retain talent with modern skills:
According to a study by Forrester, only 16% of companies have the right skills, compared to 75% of companies with a digital strategy. Another survey found that nearly 93 percent of CIOs face a major challenge in closing the skills gap and keeping pace with changing technology trends. Due to disruptions caused by emerging technologies (e.g. intelligent process automation, robotics, artificial intelligence, cloud, new-age process management), CIOs must be at the forefront of sales management. This will help you develop your skills and capabilities, build an iterative supplier ecosystem, and foster innovation and growth.
• Connect decentralized software:
Cloud computing was the next big step when it started. But the problem was slow adoption due to security. It didn’t grow as fast as industry experts had predicted. But the scenario has completely changed in the present. Today, there is a growing need for cloud and SaaS offerings. Instead of choosing one partner, companies are opting for SaaS offerings that meet specific functions. As a result, the CIO focuses on integrating multiple software applications in the enterprise into one coherent system.
• Merging old and 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 traditional technologies with modern technology without compromising functionality or security is becoming an increasing challenge for CIOs on their journey to digital transformation. Banks also face the challenge of new players such as FinTech. Banks can compete with them or work with a better digital offering.
Dealing with resistance to internal cultures: Organizational change is necessary when a bank moves to a purely digital organization to maintain the impact of change. The success of a digital transformation journey depends on the culture of the organization. The entire organization must be informed and CIOs must assess internal readiness for such transformations.