The most popular and comprehensive Open Source ECM platform
Almost all financial institutions are spending money to digitize and innovate, according to a report by Infosys Finacle. The problem is that small institutions are not able to keep up, not just with bigger financial institutions, but with technology companies.
In an effort to innovate, financial institutions are investigating and funding projects in cybersecurity, analytics, open banking, conversational AI, process automation, the internet of things, blockchain, and augmented and virtual reality.
A big problem is that only about half of businesses actually have a strategy for innovation or have brought on board executive leadership, like a chief innovation officer, to help drive their effort towards innovation and digital transformation.
Despite well-intentioned efforts to spend on innovation, at many businesses, especially smaller ones, forward-looking projects frequently suffer relative to projects that directly support the current business processes.
The Infosys report found the following challenges and roadblocks that are holding back businesses from more aggressively pursuing innovative projects:
- Top Challenges: System integration, Legacy technologies, Time and cost to move from concept to reality
- Roadblocks: Insufficient investment dollars, competing priorities, need to focus on cost cutting, need to address compliance requirements
- Time to results: 50 percent say that investments in innovation will take 1-3 years, while one-third say they expect to see results in less than one year.
Jim Marous, author of the Infosys study, said that “we see a continued focus on iterative innovation as opposed to disruptive innovation, limiting the potential benefits of big data, advanced analytics and digital technologies. The winners in the future will be defined by those organizations that can leverage these three pillars in the delivery of a better customer experience.”