From the Influencers

Why Your Bank May Not Survive the Digital Revolution


November 02, 2015


It’s a common scenario – the banks where we make deposits, manage money and arrange for financing are often run by individuals in the C-suite without any technical experience. In fact, many of these leaders resist the use of social media or other communication tools many of us find common in work and play. In a digital economy, are these the leaders you want making decisions about your money?


The answer to this question is something financial institutions need to pay attention to as millennials start establishing households and Generation X adopts everything digital. Too many of us are throwing away our checkbooks in favor of online baking, automatic payments and money management through the ease of a mobile app. When tech experience is lacking in the leadership of the financial institution, the solutions put in place to support these capabilities may not be optimal – especially if those making the decisions don’t know the difference.

Think this problem is just in the smaller banks in rural America? Think again. According to the latest Accenture study, cited in this The Cointelegraph report, only 3 percent of CEOs and 6 percent of board directors of the world’s largest banks have any technology experience. The study refers to this experience as having held senior technology positions at a company or senior responsibilities at a technology firm.

Without making this kind of experience a priority, these financial institutions lack the competency needed in its leadership to be able to effectively drive modern innovation and cyber security. The banking industry, according to the Financial Times, continues to perform poorly when compared with other sectors. As growth and development are essential to survival in intense competitive markets, a lack of technological competency can put a bank at significant risk.

Image via Shutterstock

Consider the biggest competitive threat banks are facing right now – financial technology companies. Combine this competitive threat with the risks associated with cyber security shortfalls and these financial institutions may be positioning themselves not for strong market positioning and growth, but instead a quick and silent obsolescence as they lack the ability to meet the demands of a digital economy.

But how long will this death sequence take? While it’s easy to point to these large financial institutions and claim they lack the necessary tools to sustain profitability without technological savvy. Yet many of the wealthy individuals who helped build the banks into what they are today are of the same generation as the banking leaders and have the same technology deficiencies.

As this generation continues to age, however, it’s time to bring in leadership that is not only experienced in growing financial opportunities, but also versed in the technology necessary to compete. Those who fail to do so as quickly as the market demands will quickly be left behind. 




Edited by Erik Linask

Article comments powered by Disqus







INDUSTRIES


The JMRConnect team brings decades of experience garnered from multinational corporations, the public sector, NGOs and industry associations, and as such is able to provide clients with the expertise and strategy necessary for an impact campaign.


FEATURED CASE STUDY


Not only did JMRConnect significantly increase website traffic, organic visibility and optimize their SEO, but lead gen saw a drastic surge overall.


FEATURED INFOGRAPHIC


500% Increase in tracked top 3 keyword ranks (2 to 12)


Featured Influencer


For 30 years, Yorktel has gone the distance taking the complexities out of video and unified communications & collaboration (UC&C). As a video managed services and cloud provider, we bring your enterprise video communications to a new level, for today and tomorrow's technology. Yorktel - making complicated simple.