Info-Tech Research Group’s latest blueprint highlights the transformative power of Agile practices in addressing industry challenges and explores how it can improve customer experiences, foster innovation, and optimize operational efficiency. The firm suggests in the new resource that by emphasizing customer centricity, coordination with suppliers, built-in quality, innovation culture, and a learning organization mindset, banks can adapt, innovate, and excel in the fast-paced digital landscape.
TORONTO, July 16, 2024 /PRNewswire/ – A new industry resource from global research and advisory firm Info-Tech Research Group highlights the challenges faced by the banking sector in adapting to the fast-paced digital landscape, including rigid traditional processes, slow innovation cycles, and fragmented communication between IT and business units. The firm’s research findings on the topic, published in its latest blueprint, Consider Agile for Banking, provides insights on how Agile practices can address the current obstacles in the banking industry to foster a more responsive and customer-centric approach. Info-Tech advises that Agile methodologies can streamline operations, enhance collaboration, and drive continuous improvement, which is essential for maintaining competitiveness in the modern banking sector.
“Agile has been around for over 20 years and has transformed software development and business models,” says David Tomljenovic, principal research director at Info-Tech Research Group. “It has become an important methodology to help businesses within rapidly changing markets respond quickly with competitive products and services.”
Info-Tech’s research highlights the banking industry’s constant pressure to deliver new products and services to remain competitive with a growing number of market participants. The industry’s current processes are rigid and often based on outdated Waterfall development methodologies requiring extensive upfront design. Additionally, many banks have complex, hierarchical structures with a culture that does not promote ongoing communication, collaboration, or openness to change. This underscores the need for a shift to Agile methodologies to enhance flexibility and responsiveness.
“Despite the overwhelming adoption of Agile across many industries, it has not been fully embraced in the retail banking industry,” explains Tomljenovic. “As Agile was adopted, industries that were highly regulated began to recognize that its principles did not always align with high levels of regulation. With its roots as a software development methodology, Agile has also struggled in environments where there are significant amounts of legacy technology and high complexity.”
The firm identifies numerous opportunities for banks to implement Agile and realize significant benefits. While broad-based adoption may be impractical, many banks are finding success by combining traditional Waterfall methods with Agile to enhance customer centricity.
To thrive in a rapidly evolving environment, the banking sector must overcome several critical challenges. These challenges include addressing real-time data demands for dynamic market shifts, managing rising operating costs due to stringent regulatory requirements, and investing in robust cybersecurity measures to protect against increasingly sophisticated threats. Furthermore, organizations must attract and retain skilled talent in a highly competitive market. By strategically aligning IT initiatives with organizational goals and fostering a culture of adaptability and innovation, banks can effectively tackle these challenges, leading to enhanced and sustainable growth.
In its latest blueprint, Info-Tech highlights five common Agile elements best suited for the banking industry:
Customer Centricity and Design Thinking: Almost every bank now prioritizes customer centricity, contrasting with past practices where products centered on the bank itself. The rise of neobanks and non-financial competitors underscored the necessity for customer-focused strategies. Agile methodologies drive this shift, directing banks to allocate resources toward enhancing customer experiences, reflecting a fundamental transition from internal to outward-focused operations.Coordinating Trains and Suppliers: Modern banking requires comprehensive system reviews before implementation due to complexity. Suppliers are crucial for integrating AI and machine learning, as most banks cannot do this alone. Upgrading infrastructure to include composable systems, AI, and fintech is essential for banks to stay competitive and integrate advanced capabilities.Built-in Quality: In banking, strict regulatory, legal, security, and privacy requirements necessitate compliance from product inception. Banks emphasize upfront planning, built-in quality concepts, and extending these principles to non-essential areas like customer engagement to ensure compliance, mitigate reputational risks, and deliver customer-centric products from the start.Innovation Culture: Traditional banking methods risk business decline, making innovation crucial. Encouraging employees to innovate, as they interact directly with customers and processes, should be a priority. This internal innovation can lead to new products, reduced costs, and higher customer satisfaction. By tying innovation to specific business outcomes, banks can enhance automation, adopt new technologies, and increase market agility. However, innovation should be purposeful and not pursued merely for its own sake.Learning Organization: The banking sector is undergoing a significant transformation, requiring new skills and a learning mindset to navigate changing market conditions. T-shaped employees, with broad and deep expertise, are key assets for banks in flux. Info-Tech advises that by embracing team-based work, especially through cross-functional teams, banks can swiftly adapt by promoting knowledge sharing, developing versatile talent, and fostering a culture of continuous learning.
Info-Tech’s comprehensive blueprint explains how a strategic shift can enable banks to overcome traditional barriers, respond more swiftly to market changes, and deliver superior customer experiences. According to the firm’s insights, embracing Agile is not just about adopting a new methodology; it’s about fostering a culture of adaptability and resilience. This approach is crucial for staying competitive and achieving long-term success in an increasingly dynamic and demanding industry.
For exclusive and timely commentary from David Tomljenovic, an expert in the banking industry, and access to the complete Consider Agile for Banking blueprint, please contact pr@infotech.com.
Info-Tech LIVE 2024
Registration is now open for Info-Tech Research Group’s annual IT conference, Info-Tech LIVE 2024, taking place September 17 to 19, 2024, at the iconic Bellagio in Las Vegas. This premier event offers journalists, podcasters, and media influencers access to exclusive content, the latest IT research and trends, and the opportunity to interview industry experts, analysts, and speakers. To apply for media passes to attend the event or gain access to research and expert insights on trending topics, please contact pr@infotech.com.
About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
To learn more about Info-Tech’s divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact pr@infotech.com.
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
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SOURCE Info-Tech Research Group
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