3 Factors Of Causing Interruption to Banking Innovations
Since the day digitization has started knocking at every sector’s door, the strategy to work has begun to improvise. The internet of things is penetrating deep into our lives.
Market research companies are very much aware of this new taste of the modern people who love to go digital in every work. Whether it is handling power consumption in the house from far or to automate the car, the internet of things is everywhere. Banking and finance sectors are not an exception in this regard. Digital innovation has shaken hands with creation. Thus, we all love to do financial transactions from our smartphones instead of going out to banks. Net banking has modified our ways of expenditure. But banking and health care sectors are still waiting for fine tuning. Most of the banking and health institutions are still vulnerable since they adhere to traditional ways. But now, they have understood how digitization, simple designs and advanced models of pricing are booming.
The banking and finance institutions, which have joined the league of fintech companies, have become biggies. Whether it is HDFC, SBI, ICICI or Axis Bank, these all have deployed software and their experts for accelerating as well as coaching the young starter-ups for investing in digitization. The studies of market research companies India have found basically three hurdles interrupting success to traditional and vulnerable banking institutions. Have a glance below to find what these are and how they can be removed:
Adherence to Outdated Technology: Problems
- New technologies are evolved.
- Biggies of banking world are failed to integrate new technologies in their workings; thus, lagging behind the fast-paced environment.
- Product demand and users are variant and millennial respectively.
- Connectivity is restricted to a certain limit.
- According to banking and finance market research analysis, it’s an expensive deal to hire real-time banking systems, efficient middleware and services that can effectively and smoothly run across various channels and the third parties.
- Currently, the traditional banks outsource banking services as well as the current system due to lacking professional software engineers along with agile skilled technical workers.
Solutions - Fintech companies have solutions to break the bondage of traditional proceedings through technology innovations at better price structure.
- Upgrade technology by committing time and financial resources; hiring skilled technical staff; introduce flexibility in management.
Outdated Culture: Problems - Long cycle of failure and lacking process of improvement.
- Long term plans in one go.
- Unskilled staff
- Fear to take risks and find it difficult to slip in new technologies.
Solutions - No need to completely abandon traditional workplace culture.
- By making the workplace appealing by recruiting professional technical assistants.
- Banks to be responsive to customers’ concern by addressing them with their possible solutions.
- By offering incentives and perks for establishing sound relationship.
- By ascertaining timely feedback.
Rigid Organizational Structure: Problems - Traditional environment and management structure.
- Rigid hierarchy including associates, analysts, managers, directors, vice-presidents and president.
Solution - Innovation is to be kept at top priority for breaking barriers of finance and banking sector.
- Equipping hierarchy of management with technical skills.
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