Here’s something that we suspected for a long time:
Gartner’s data continues to show that these supposed economies of scale are actually being overwhelmed at big banks (typically those with annual revenue greater than $10 billion) by “accelerating demand and complexity”.
So there’s more demand than supply AND the actual demand is more complex than first glance.
What should the bank do then?
- CIOs also need to calculate product support costs. Gartner says the continued proliferation of products, added to the lack of product retirement, adds overheads to IT and introduces additional costs to work around operations that were designed to fit to an original product set.
- They also need to evaluate non-financial services management models. “Google, Facebook, Amazon, and so on, provide role models and a source of ongoing best practices for financial institutions”, says the analyst
- CIOs must also run an exercise to assess which jobs/roles can be replaced using artificial intelligence, agents and computational processes, added Gartner.
Doing the 1st and the last point is an ongoing exercise that I believe have been doing for a while now. I suspect the middle point is something only a handful of banks can do…or should I say, only a few have the culture to open their mind and consider non-financial services management models.
This reminds me of the Kaching goes Ca-ching post.