Channels

09:48 AM
Bryan Yurcan
Bryan Yurcan
Slideshows
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Top Challenges Facing Bank CIOs Over the Next Year

Bank Systems & Technology asked several industry experts for their take on what will be the next big issue bank technologists will tackle in 2014.
Previous
2 of 3
Next


Innovation the Key

Jacob Jegher, Research Director, Celent

Bank CIOs and technology executives face all kinds of challenges. Every technology executive in the banking industry should focus on turning these challenges into opportunities. The key is to innovate on all fronts. Innovation can be both internal (e.g., finding creative ways to maximize a budget) and external (e.g., providing new and exciting tools to customers). Bank CIOs and other executives need to build a cohesive approach to innovation management. It's important to determine who is responsible for innovation in the enterprise and make sure that a culture of innovation permeates from the top down to the front line staff. Innovation can also take on a bottom-up approach; motivated employees are creative employees. Employees from across the bank should be contributing to new product and business ideas. It's a huge challenge to create that culture and emphasize innovation in a constrained environment. Throw legal requirements, compliance, and security into the picture, and it becomes especially difficult to blend innovation into day-to-day activities.

Frankly, technology executives have no choice but to emphasize innovation. This is particularly relevant for digital channels, because customer expectations are being set outside the banking world. Online and mobile banking used to be viewed as alternative channels. This is clearly no longer the case. Digital channels are critical for customers and for financial institutions. Adoption of online and mobile banking has grown steadily, but there is plenty of room for improvement. It's all about creating value for the customer and seeking win-win scenarios. Banks have to move from providing basic transaction engines to offering value-driven interactive solutions.

 

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

Previous
2 of 3
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
1/22/2014 | 5:39:38 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
That's a long ongoing challenge. I think many banks have been working on that the last few years. But with each new regulation the challenge transforms with different requirements and divisions involved.
babugb
50%
50%
babugb,
User Rank: Apprentice
1/22/2014 | 8:44:57 AM
re: Top Challenges Facing Bank CIOs Over the Next Year
Another top challenge is - Making people, system, process, technology & data to be adoptive to the changing regulations.
Greg MacSweeney
50%
50%
Greg MacSweeney,
User Rank: Author
10/8/2013 | 10:11:01 AM
re: Top Challenges Facing Bank CIOs Over the Next Year
I'm definitely hoping to hear more from the financial services community about how CDOs and Chief Data Scientists (CDS) fit into the organization. Right now, it seems to depend on the firm. Some have the CDS/CDO as part if the tech group. Others have them in the data group. And some have the CDO/CDS in separate groups. It's worth looking into.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
10/7/2013 | 9:12:19 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
I think there is also a big need around better collaboration tools to help enable innovation. Financial services organizations have been leery of third-party tools to help with that, but greater collaboration across organizations is a necessary ingredient for innovation.
Byurcan
50%
50%
Byurcan,
User Rank: Author
10/7/2013 | 12:39:32 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
Yes, several banks have "innovation labs" now (off the top of my head I know Capital One does, but there are also others I can't think of right now), it is becoming part of the expected culture.
Greg MacSweeney
50%
50%
Greg MacSweeney,
User Rank: Author
10/7/2013 | 10:08:44 AM
re: Top Challenges Facing Bank CIOs Over the Next Year
Institutionalized innovation sounds like an oxymoron. However, you are right...many companies are trying to do just that. I guess that companies see how Google has institutionalized innovation by allowing employees to have a day to experiment with new ideas. Fidelity, State Street and many other financial services organizations have small (and sometimes large) groups that are trying to find new ways to approach old business problems.
KBurger
50%
50%
KBurger,
User Rank: Strategist
10/5/2013 | 2:58:54 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
I agree with each of these forecasts, but I think they all suggest another necessary focus/challenge for CIOs -- the need to work and coordinate increaslingly closely with a new generation of business executives: chief marketing officer, chief data/science officer, chief customer experience officer, etc. All these old/new functions are technology based but have their distinct mandates, too. CIOs will be have to be able to deliver and navigate in this environment.
KBurger
50%
50%
KBurger,
User Rank: Strategist
10/5/2013 | 2:52:38 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
I think one of the most interesting trends to watch in IT organizations across all industries, not just financial service, will be the efforts to "institutionalize" innovation --what you can do in terms of structure, job descriptions, incentives/compensation, training, etc. to make innovation part of everyone's job and something that happens in a meaningful way, not just buzzwords or rhetoric. Lots of efforts right now around innovation labs, hackathons, Chief Innovation Officers, etc. -- remains to be seen what kind of long-term impact these will have.
Nathan Golia
50%
50%
Nathan Golia,
User Rank: Author
10/4/2013 | 7:57:41 PM
re: Top Challenges Facing Bank CIOs Over the Next Year
I liked Jegher's point about innovation management. In insurance we are seeing a proliferation of innovation labs and blitzes aimed at finding breakthrough apps. But I do wonder about the concept of putting structure around innovation. Can companies capture and recreate the spirit?
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Slideshows
Video