Banks may be experts at making money, but many are finding that technology is draining their coffers. Today, the entire financial industry is dependent on technology and customized tech solutions that provide the foundation of their daily operation and also provide the insurance they need to safeguard compliance. Even so, new software development and the endless hardware upgrades can be costly for small and large financial institutions alike. In addition, many banks suffer technology deficits; their technology platforms are so far behind that they need to invest a windfall to get up to speed.
Lack of Capital
The banking industry, particularly in this time of strict compliance, has issues many sweeping reforms that affect large and small banks alike. While many interconnected banks with multiple branches may be able to effectively weather these compliance issues by instating new technology, small regional banks may simply lack the capital needed to invest in new technology solutions. While some banks are choosing to team up to “cut the tech burden,” as Reuters reported, and collaborate to defray technology costs, other savvy financial institutions and looking at other ways to cut corners to fund their tech development.
Lack of Resources
For banks without the IT capability to drive software development on their own, outsourcing to expert software development firms may be a smart alternative. Software development companies like Liemur work with various industries including the banking and financial sectors to create innovative banking solutions that support compliance as well as day-to-day operations. Rather than trying to expand your IT staff to accommodate your bank’s software development needs, consider working with a firm that can seamlessly integrate with your institution to create the technology solutions you need to thrive.
Working with some outsourcing firms for boutique solutions may not result in the cost savings that many banks need when trying to get their IT framework up to speed. It’s important for banks to explore all of their options when it comes to outsourcing firms. One solution is to seek out a firm that offers cutting edge solutions at affordable costs. Liemur, for instance, a London-based company, is able to offer substantially reduced costs for its services because it works with several IT developers in Hungary where rates for IT work are lower. You bank doesn’t have to pay exorbitant rates for superior IT work.
Many banks rely on technology that is barely getting them by. While there may be financial constraints that make investing in new technology solutions difficult, there are also mindset issues to address. Bank leaders must embrace the role that technology can play in their bank regarding services and compliance. If your technology is lagging, your financial institution is at increased risk for non-compliance. Can it afford this misstep? To avoid the pitfalls of non-compliance, it’s essential to devise a strategic plan for upgrading your bank’s technology platform. If you aren’t sure how to go about upgrading, talk to experts at an IT firm that specialize in banking solutions. Simply consulting with some experts in this field can help you shift your mindset and develop a plan for technology success.
Finally, some banks don’t just have a technology deficit; they have a tangle of too many technology solutions. Outsourcing an IT consultant can help your bank untangle its IT quagmire and streamline its solutions. This can reduce costs and lead to a more sophisticated operating system that is easy for staffs to adopt.
If your bank is struggling with its IT prospects, it isn’t alone. There are solutions, however, to get your technology platform on track. Talk to an IT firm to find out how its solutions can affordably drive your bank’s IT operations forward.