The instinct of many firms, right now, is understandably focused on survival…which isn’t wrong. Strategic leaders, however, are looking at both near-term and longer-term survival, if not outright growth. Historically, leaders that have invested in new markets, new capabilities or in transforming their organizations during challenging periods, especially when market expectations are low, are typically rewarded with outsized returns. While the industry has generally lagged, there were many reasons for incumbent financial institutions to more fully embrace digital, even before COVID-19.
- The need to address fee and margin pressure with greater operational efficiency, in order to reduce costs and deliver positive operating leverage;
- The need to be more data-driven, and less siloed across multiple functions;
- The need to enhance, or reinvent product, manufacturing and distribution capabilities;
- The need to deliver fit-for-purpose client solutions at scale;
- The need to deliver a client experience that matches, or exceeds client expectations shaped by e-commerce and the consumerization of technology;
- The need to engender greater client loyalty and attract new clients by providing timely, responsive, and highly relevant information, no matter the circumstances (including during a pandemic, or any other crisis);
- The need to reduce errors, and to improve operational and market risk management;
- The need to create a coherent strategy and architecture that provides access to, and governance of enterprise data assets, while pushing data analysis to the edge;
- The need to be more accurate, and responsive in meeting regulatory requirements, without incurring tremendous costs to do so;
- The need to remain competitive with emerging FinTechs, and non-traditional entrants;
- The need to increase agility and reduce time-to-market;
- The need to focus on core competencies and differentiators, while partnering for the rest;
- The need to attract and retain contemporary talent, and create a culture of innovation;
- The need to variablize costs and shift from CapEx to OpEx for some fixed assets;
- The need to maximize client, employee, societal and shareholder value;
- The need to not become the next Kodak!
