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current processes are rigid and often based on outdated Waterfall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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