Progressive digitalisation is leading to a fundamental change in the financial industry and is calling entire business models into question. Customer behaviour has also changed significantly. The way services are perceived and evaluated by banks and insurance companies is in a state of upheaval. The regulator is also exerting pressure on business models. For example, requirements are emerging with regard to climate-friendly service provision. Furthermore, additional capital requirements, data and customer protection, partly still unknown cyber risks as well as geopolitical changes and global crises are having an impact on institutions.
For financial service providers, this means finding answers and solutions. The CIO's agenda is therefore determined by the transformation of IT from a reactive service provider in the company to a proactive partner that supports the business units in developing and implementing new products, services and services. In the process, financial service providers should align themselves even more strongly with the needs of customers on the product side. Optimised and integrated IT is central to this. Only through effective interaction can innovation succeed and competitive advantages be generated. It is important to meet the increasing customer requirements in the context of digitalisation, as well as to implement them in conformity with the regulatory provisions.
With our solution portfolio, we support CIOs in eliminating friction losses and enabling the digital transformation into a sustainably networked company.
An IT strategy that is closely interlinked and aligned with the business strategy is therefore of central importance. Unfortunately, the necessary alignment of strategic IT goals with business goals often does not take place - a real weak point in "business & IT alignment".
Modern concepts for simplifying architectures
Once strategic framework conditions have been defined, the task is to translate them into a future-proof IT architecture. The main challenge, however, is not so much the design of a sustainable, scalable and innovative architecture, but rather the design of the transformation. Most of the architectures of the established institutions are usually characterised by a complexity and heterogeneity that has grown over decades. A strategy to simplify the application landscape is therefore an essential element to reduce costs and complexity in the architectures and position them for innovation.
Agile and scaling operating models as a success factor
Directly related to the IT architecture is the question of the appropriate IT operating model. Modern operating models, service management aligned with proven standards and innovative development processes (such as DevOps) are the hallmarks of a modern organisation. In addition to IT service provision, close interlocking with the specialist departments is at the heart of integrated IT.
Today, service provision no longer ends at the corporate boundary. The sourcing model - i.e. which service providers and partners are to be integrated or connected into one's own architecture - is a central question. In practice, very different sourcing strategies and ecosystems can be found, from very monolithic contractual relationships of "full outsourcing" to very small-scale "outtasking" landscapes. Both models are associated with advantages and disadvantages that need to be controlled operationally within the framework of sourcing management.
Cloud services have become indispensable in the financial world
Increasingly, cloud services are being embedded in sourcing, which also support flexibility and agility in the provision of IT resources. The initial scepticism in the financial sector towards cloud solutions due to regulatory and compliance requirements has subsided. Against this backdrop, a dedicated cloud strategy and transformation roadmap should be important topics on every CIO's agenda.
We understand the current challenges of a CIO. We would be happy to accompany you in your transformation towards agile, future-proof and regulatory-compliant IT.
We would be happy to present our range of solutions to you personally. Get in touch with us.
Further Information (in German only)
Strategien von Banken & Versicherungen für den Weg in eine digitale Zukunft | Kooperationsstudie von KPMG und Lünendonk®
Kooperationsstudie von KPMG und Lünendonk® zur digitalen Zukunft von Finanzdienstleistern
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