Who would want to be at the technology helm of a major retail bank today? It may seem glamorous, but what do you think wakes these CEOs up at 3am in a panicky cold sweat?
Is it the threat of new players in the market such as foreign brands or local mobile phone companies? Is it the burden of recent regulation such as Basle II, the Financial Services Charter or FICA? Or is it product design, balancing distribution channels, BEE or meeting shareholder demands for lowering expense ratios?
It could easily be any or all of the above, and the reality is that workable solutions to these issues are not simple, single thread answers. The truth is that there is no silver bullet that will restore him to his much-needed rest, not even technology.
As much as it is a significant element in the successful functioning of a competitive bank in the 21st century, technology alone cannot solve the complex and inter-related challenges that leaders in the financial services industry face today.
The stock in trade of a financial service company is information. There are no delivery trucks rolling up to the goods receiving dock or warehouses filled with components and finished goods. The challenge for the financial service industry thus lies in the quality of the information, people, processes and technology being utilised to interpret it. These all contribute to the efficiency and effectiveness of the bank in meeting the needs of its customers and the requirements of the shareholders.
But to do this there are several critical elements to consider when trying to build a successful business, aside from relying on technology as the competitive edge:
* A clear business vision.
* An aligned strategy that mobilises and enables the realisation of that vision.
* A culture of inclusiveness and sharing.
A leadership team can no longer afford to run a silo-based organisation. It should rather ensure the IT, HR, process improvement and customer experience functions are fully engaged with sales, marketing and finance. In doing so, the CEO, among other things, is able to fully understand the abilities and constraints of each area and in addition, is able to facilitate improved departmental integration in the quest to realise the overall corporate goal of customer and shareholder satisfaction.
An obvious corollary in this scenario is that the CIO can no longer be the "go to" person who is entrusted with the stewardship of the corporate technology and information. The CIO needs to think like a banker or insurer and be aware of the commercial reasons for the investments being made as well as the solutions being demanded.
The CIO of a financial services company is thus a strategist, communicator, enabler and most importantly a business leader. This means that as much as technology is a critical element, it is only an enabling mechanism and not the ultimate competitive advantage as some would think.
Ultimately, it is the people, processes and technology that together will provide a financial service company with the much-needed competitive advantage.
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