Experts anticipate that a significant transition is on the horizon for IT in the banking industry. For example, several banking executives weighed in on what they think will be the biggest IT challenges to overcome this year. Some of these challenges include anticipating the future as well as issues related to mobility, DDoS and security, data and speed, and regulation compliance.
Anticipating the Future
Staying a few steps ahead of the next technological innovation will be crucial as banks prepare to meet customers’ future needs and maintain their competitive advantage. One critical area of investment includes developing portal technology to provide enhanced data analysis and reporting. Julie Elberfeld, Commercial CIO for Capital One, explains that “banking is essentially an IT-led industry and software development will be a huge need.”
One industry executive described mobility as a “seismic financial shift” that will come with many challenges. If managed well, though, mobility will provide an invaluable competitive edge. Some key mobility-related elements for banking include scalability, devices, functionality, security and integration.
DDoS and Security
DDoS attacks have been successful in crippling websites, but perhaps the more serious damage has been the far-reaching effect that these attacks have had on consumer confidence. According to Luge Pravda, SVP of NetNames, “with hackers devising new strategies daily, it is key that any solutions are scalable, robust and regularly updated.”
Data and Speed
Some executives claim that data must fuel the customer experience; however, insight produced from data must be turned around quickly in order for the data to actualize its true value. The main concern here is whether or not traditional banks will be able to integrate new technology fast enough to meet the demands of customer needs as financial institutions attempt to understand their customer base.
There are some new regulations that have more of an impact on the business model and profitability for banks; however, numerous requirements are also data, operational and IT driven, and they will significantly impact IT infrastructure.
What IT challenges do you think the banking industry will face in 2013? To learn more, read the full article at BankTech.com.