How is the traditional banking industry keeping up with today’s constantly changing technology landscape? Not very well it seems, according to the video, “Addressing Start-up Competition,” by SAP and IBM.
Banks are facing challenges in several areas, but there are four that stand out in today’s market.
The top 4 challenges facing banks and financial institutions
- Not making enough money. Despite all of the headlines about banking profitability, banks and financial institutions still are not making enough return on investment, or the return on equity, that shareholders require.
- Consumer expectations. These days it’s all about the customer experience, and many banks are feeling pressure because they are not delivering the level of service that consumers are demanding, especially in regards to technology.
- Increasing competition from financial technology companies. Financial technology (FinTech) companies are usually start-up companies based on using software to provide financial services. The increasing popularity of FinTech companies is disrupting the way traditional banking has been done. This creates a big challenge for traditional banks because they are not able to adjust quickly to the changes – not just in technology, but also in operations, culture, and other facets of the industry.
- Regulatory pressure. Regulatory requirements continue to increase, and banks need to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements.
These challenges continue to escalate, so traditional banks need to constantly evaluate and improve their operations in order to keep up with the fast pace of change in the banking and financial industry today.
Check out the most recent challenges facing banks and financial institutions and how you can overcome them at the upcoming SAP Financial Services Forum 2017 on July 4—5, 2017. An extraordinary line-up of C-level speakers from the coalface of successful digital disruption and innovation will be featured, including Ashok Vaswani, CEO of Barclays UK, as well as some of the industry’s smartest CFOs, CIOs, CMOs, and industry luminaries from across Europe, the Middle East, Africa, and Asia. The theme for this year’s event is “Winning in the Digital Moment.” The real-world case studies, inspiration, and innovation you’ll see and hear, combined with the networking opportunities with more than 500 peer level delegates, are designed to enable you to do exactly that. I look forward to seeing you there!
This information was based on Finextra’s video: “Addressing Start-up Competition,” featuring SAP and IBM representatives at SAP’s Financial Services Forum in London, England, June 2015.
- Look at how digital technology is transforming the business landscape by downloading the new SAP eBook, The Digital Economy: Reinventing the Business World.
- Discover the business and technology forces driving digital transformation detailed in the SAP eBook, Digital Disruption: How Digital Technology is Transforming Our World.
- What are the 3 Greatest Challenges Of Core Banking Transformation?
- Learn 7 Questions CFOs Should Ask Themselves About Cyber Security, and find out if Banks are Taking Chances with Cyber Security.
- See how another industry is transforming in the digital age. Find out about connected healthcare in the SAP eBook, Connected Care: The Digital Pulse of Global Healthcare.