In last couple of decades, we have learnt that
– Technology is not the core of the bank
– Technology should be outsourced
– Technology is a cost center
– Tech team does not understand business
– The main job of tech team to do plumbing
– Tech teams work during night (they must be inefficient!!!)
As decision makers were always business guys, they listened to consultants for getting guidance on technology (because our tech guys anyway don’t understand). Consultants were copying some stuff from Eastern Europe and they guided on total outsourcing. This resulted in core technology and management getting outsourced. and technology departments getting reduced to maintenance and support…
Year 2015 onwards : Fintechs are interestingly using technology to drive business. and Business teams are again saying the same stuff “Our technology teams cannot anyway understand fintech”. And consultants are echoing the same.
Time for Boards to wake up and start investing into Tech. In the new world, Technology is the core of any offering… From acquisition to servicing to cross sell to exit, everything is running on tech..
Or they can make same mistake and wait for their Kodak moment.