March 4, 2019
Dondi Black, VP of Payment Strategy, FIS
Among the many discussions about how to modernize and transform companies in response to disruptive forces, Dell EMC CTO John Roese states that the IT industry faces a critical transitional phase:
“Whatever you think of the scalabilities of the current generation of infrastructure and how difficult they were, add about three zeros to every number you can imagine. That is what we are going to experience going forward.”
In other words, “We ain’t seen nothing yet.”
Financial institutions determining where to invest need to answer two key questions:
Rapid market changes call for revisiting your strategy
To optimize payback on investment, companies should first revisit their strategy. Start by answering a basic question: Who are your target customer segments – the customers upon whom you will focus resources to attract and retain – that will drive future revenue? Are they customers with more advanced financial needs or are they members of an emerging segment with less complex needs? Also, consider the changing expectations of consumers especially when it comes to speed and convenience of delivery.
Define the core product strategy
Defining the core product strategy involves determining what product gaps must be filled to transition from the current to desired state. Financial institutions will engage in a balancing act between offering products that delight Baby Boomers and members of Gen X but deliver to the expectations of millennials and Gen Z members who are just beginning their financial journeys.
The good news is that the difference between what different generations want continues to narrow, according to a recent study by Euromonitor. Baby boomers, especially the “mass affluent”, are not anti-tech.
Be purposeful to monetize your investments
“Budget constraints will translate into adopting new technologies that are purposeful, need fulfilling and problem solving as funds for running after shiny objects dry up.”
Jim Johnson, Head of FI Payments, FIS
Purposeful investments include those that are:
Finally, consider the impact of investment upon:
Jumpstart your day in a matter of seconds with quick snapshots of industry trends and leading perspectives delivered straight to you. Sign up for RISE here.