Oliver Wyman has published a powerful new paper, The State Of The Financial Services Industry 2019.
Complex legacy infrastructure is costly and slow to adapt to changes. For an industry whose product – the movement and storage of money – is electronic, the processes remain far too manually intensive.
The consensus is that overhauling all of this will require years of digital transformation. We challenge that consensus…. [we believe that] giant financial services firms can free themselves from the shackles of their legacy infrastructure.
We at Kuelap agree. But digital transformation is not just for giant financial services firms; it’s just as important for financial cooperatives, whether big or small. Our mission is to provide powerful systems for coops of any size, so they can match — or even exceed– the systems that large banks build for themselves.
Oliver Wyman goes on to look at how big banks are already starting their transformation to digital.
We believe the quality and low cost of new technology, the potential for dramatic change in competitiveness, the potential for reduction in conduct and cyber risk, and the scope for smooth migration all add up to making this idea compelling now. Is this a realistic vision for the industry? Our news is that if you look carefully, you will find it is already starting to happen.
This is an area where cooperatives actually have an advantage; without the overwhelming complexity of big-bank systems, cooperatives can move faster. Big banks may be talking about digital transformation, but our customers are actually doing it.