The primary challenge for bank technology executives will be to do more with less. Technology can enable banks to increase revenue while continuing to reduce their costs, and I recommend the following:
- Decrease the number of vendors. Banks need to standardize buying processes and significantly reduce their number of vendors to meet budgetary restraints.
- Reduce complexity. Standardize as much as possible; differentiate when necessary. Consolidate IT platforms, decrease the number of interface points and harmonize user interfaces.
- Adopt service-oriented architecture (SOA). Banks need to create a stepwise, long-term approach to SOA to enable production at lower cost, provide high flexibility to adapt to customer demands, and facilitate customer-specific offerings and pricing.
- Invest in pricing technology. Banks are switching from a cost-driven to a demand-driven model. Pricing will take into account more parameters, in faster cycles. Pricing technology will allow banks to optimize profit, volume or a combination of the two.