Chris Beard, Solution Sales Director – Europe, Diebold Nixdorf

By Chris Beard, Solution Sales Director – Europe, Diebold Nixdorf

Many organisations are assessing cloud-based software options, as the financial services industry strives for stable, inclusive services and growth. Remote applications and infrastructures are, of course, not new, but as the economy becomes increasingly turbulent and unpredictable, new operating methods are being considered across all parts of the organisation.

Simply keeping pace with today’s market demands is a huge challenge, and many are looking towards technology as an enabler to shift towards a more agile model. Creating scalable processes that will facilitate a more flexible and transparent way of working now and laying the foundation for the future, are rising on the list of strategic priorities.

Many financial institutions are embracing cloud-based software as part of this revaluation of operating models and technology stacks. Research shows that the percentage of workloads that have moved to the cloud has doubled recently, highlighting that the movement is gaining momentum. On the flip side, some organisations are struggling to leap ahead, hesitating to follow the market. Let us consider the three main barriers to pushing the green light to go.

Tackling organisation change

Any type of organisational change can be daunting. Often built on complex staffing infrastructures that have evolved and morphed over time, implementing significant operational transformation can pose challenges for financial institutions. On the flip side, newcomers to the market and those early adopter organisations are setting new heights for competition in the industry. Those already embracing cloud-based operations and next-generation software are elevating consumer expectations and setting standards that need to be followed to remain competitive and profitable.

As with all change, engaging the workplace and involving all teams is the secret to success. Agile software can promote the upskilling of staff, allowing teams to be empowered by new technology and enabling them to better meet customer needs. Embracing and applying the data streams from more intelligent software can also provide staff with greater insights and the most relevant information to complete their daily tasks more effectively.

Ultimately, it is about creating a culture open to embracing innovation. Meaningful, strategically aligned and well-communicated changes can be the make or break to success and profitability in such a rapidly evolving market.

The weight of legacy infrastructures

It is well known within the financial services industry that legacy infrastructures can pose significant barriers to implementing technological change quickly and effectively. However, with the pace of change showing no signs of slowing down, prioritising agility is key to moving an organisation forward.

With shifts in innovation and focus over recent years, we have seen layer upon layer of software stacks that now need simplifying. Most systems are old and take time, effort and resources to keep them active. This may require some heavy lifting in the first instance, but once a flexible and adaptable platform has been achieved, both the short and long-term benefits can be powerful. The ability to implement new distribution models and meet customers where they are provides significant competitive advantage.

Cloud-based software also creates an opportunity to increase transparency across the business and value chain. The pure action of simplifying processes and systems delivers advantages on many levels. In addition to decreasing cost barriers for future innovation, the ability to create scalability and be responsive in an unpredictable economy is materially valuable for any organisation. Agile remote applications can create newer, simpler ways to process and share information through a service-based architecture, alongside low code technology, which allows functionality to be added quickly in response to customer needs.

The path of least resistance

Risk aversion can often be part of the mix when organisations hesitate to move towards cloud-based software. Maintaining the status quo can often seem like the safest option when this is coupled with a complex legacy infrastructure. To manage this, many organisations have taken a phased, building block approach to reduce risk. With this course of action, innovations can be added step by step, updating processes channel by channel.

Moreover, moving forward with cloud-native software can actually help manage risk across the organisation. Firstly, creating simple and sustainable platforms which are future proofed can serve as a strong foundation for a resilient and flexible organisation. Additionally, adhering to regulation and industry compliance is often streamlined, with a simplified software approach that can roll up changes quickly and effectively when needed.

In summary, taking a tech-powered industry approach to cloud-based software is a clear driver for future success. Enabling real-time digital customer experiences, increasing transparency across the organisation, and building reliability and resiliency into infrastructures are truly allowing organisations to build value from software.

Allowing core software to keep pace with the demands of today’s market also drives revenue growth and profitability, alongside the reduction of costs. In an industry and economy that is constantly increasing in complexity, striving for simplicity and agility within our operational models will be a key differentiator for the future.