Fit for the future, today: how the new generation of managed solutions could be the answer to your business questions
July 31, 2020
Financial services (FS) is at a turning point. With customer expectations shifting and revenues dipping in the wake of the COVID-19 pandemic, it’s clear that doing what you’ve always done, only a little better and a little cheaper, is no longer enough.
However, the pandemic has also been a catalyst for innovation and differentiation – leading to new products, more relevant financial solutions and a more compelling customer experience. Crucially, what we’ve also learned from the rapid switch to home working during lockdown is how much change is possible in a short space of time.
As a result, we’re seeing a much more ambitious and fast-paced approach to transformation than many would have thought possible before. Customer-facing digital capabilities are being overhauled and technical innovators are now providing ready to implement solutions that would have taken years to develop in-house. We’re also seeing the emergence of collaborative open architecture ecosystems that enable FS organisations to reach into new markets and offer best in class products and services, without imposing prohibitive costs.
So how can you keep pace with this surge in innovation?
1. Lay the foundations
While front-office transformation is often the priority, the back- and mid-office functions will still need investment to bring them up to speed. Needs may have changed so make sure you have the right resources in place and that they are fit for purpose. For example, operational functions increasingly require higher levels of expertise and technological capability to meet ever-increasing regulatory and front-office expectations and more exacting client demands. Flexibility is also crucial in the face of today’s fluctuating market demand – the explosion in requests for payment holidays and new loan provisions are clear examples from the recent pandemic.
2. Consider your priorities
Also consider how much of your resource is being absorbed by necessary but operationally-intensive tasks, including increasingly complex regulation and reporting. What could you achieve with more time to focus on strategic priorities such as business continuity and new opportunities?
3. Look at your options
In the past, the alternative to an in-house team would have been traditional outsourcing. Yet, while this offers some cost savings, lockdown has brought its potential shortcomings into sharp focus. A third option is therefore emerging: a new generation of managed solutions that can take care of all or part of your complex, non-core or operationally-intensive processes and change-management programmes. These can be connected with the wider business, flexed to provide burst capacity and business continuity when needed and also work best when there is an active partnership – acting as an extension of your team.
The advantages of these lean and agile managed solutions include the ability to respond to regulatory developments and meet peaks and troughs in market demand without the drain of large fixed costs. By letting others do the heavy-lifting on the intensive operational areas, you can free up time and scope to focus on strategy, change management and value creation. The benefits don’t just come from improved efficiency within the operations themselves, but also by providing a springboard for innovation, differentiation and growth within your business as a whole.
To explore how our range of managed solutions could support your business needs, visit our webpage or get in touch.