Change is not easy for any type of organization. More so for companies who have to abide by strict laws and regulations like financial institutions. Most existing banking and related laws are based on outdated legacy systems of traditional companies that are not flexible and do not necessarily reflect the current financial ecosystem.
Because of these laws, traditional financial organizations are having a difficult time catching up to more innovative fintech companies despite the availability of modern solutions and the readiness or demands of customers.
Another challenge in implementing digital transformation efforts is the rigidity of these businesses in incorporating solutions. Fintech companies, on the other hand, are built to adapt to any type of external factor in order to survive and thrive. Moreover, these companies tend to have a lean structure that allows them to take their core business and apply it to solve a different problem.
Today, though slow, we are seeing more efforts from traditional companies to take advantage of new technologies to solve modern problems of their customers. For instance, almost every bank now has their online counterpart (either a mobile application, website, or both) to allow mobile and remote transactions.
With the countless technologies that are currently available, companies have to carefully evaluate which of these can actually add value to the business and the customers and not just add more systems that need to be financed and managed.
In this infographic by Prototype, a digital transformation agency, we will explore the various technologies traditional finance companies can explore to transform digitally.