Industry Insights: On the Horns of 4 Dilemmas

If it sounds painful, there’s a reason for that

More than four dilemmas face today’s banks and credit unions, of course. And they all have horns—long, sharp, curvy ones, useful for separating the champions from the rest of the herd.

There’s uncertainty in the regulatory environment, to say the least. There’s the economic climate, shifting under our feet. And new competitors keep popping up. Which of these will pack the biggest wallop for our institutions—to say nothing of our customers?

But these are large-scale external forces, and for many institutions, beyond our ability to influence. Here, we highlight four of the practical, current dilemmas that seem to be prodding us in two different directions at once. These recent articles are worth a read even if they only touch the tops of the icebergs—or the horns.

How to Create an Agile Organization. McKinsey & Co. FIs aren’t famous for their agility—although we think that perception ignores a lot of great innovation and willingness to experiment going on right now. In these times, does slow and steady still win the race, or how fast do we have to jump to meet the challenges posed by disruptors? This report dives deeply into organizational agility, and its twin cousin, instability and transformation.

Six Strategic Keys to Becoming a Mobile-Centric Bank. Financial Brand. Second, we know that omni-channel experiences are where we need to be, but do we continue to operate as if branch transactions are the main channel, and all the other channels existing as alternatives? Or do we recognize mobile as the driver of our business, and all the other channels existing only to the extent they are well-integrated?                                                      

Innovation in Banking Goes Beyond Open Spaces and Lattes. Financial Brand. Next, new technologies are developing at an undiminished pace. Is the pace too fast for our institutions to adapt well, or too slow to maintain our market position against competitors without the weight of our traditions and sunk investments? This article takes a look at innovation itself—what it is and how it works in banking.

Banking: digital transformation is revolutionizing the customer experience. Raconteur. Finally, what target do our decisions ultimately aim at: investing decisions or customer service? They both matter, but drive very different priorities when translated into technology, facilities and staffing. At least one industry analyst sees these as moving in synch if they are to move at all, and believes that banks—at least some of them—are actually “outfinteching the fintechs.”