DISQUS

Colin Henderson · 1 year ago

I think there remains one overarching problem ... banks/ CU's do not understand the strategic role of technology in their business. This might be caused by being in denial that technology is the business, but whatever the reason, this acknowledgment is essential in my mind.

Banks/ CU's tend to be run by a combination of marketing & product. Both think in terms of product and service design based on fees, interest rates, terms and conditions etc. Once technology is a core component of the design process, then new elements such as UI design, screen flows, product explainability, become essential elements of the design. One of the first questions oiught to be "Will the product work in a self service web site, or mobile phone browser?". This question has to be answered by a technologist.

Just my take ....

PS .. nice redesign

Will Evertsen · 1 year ago

Great article, Brad. As I mentioned on Banktastic, the IT Administrator of my FI before me was definitely an "old time banker" turned IT Admin. She openly admitted she didn't like working with computers, but essentially she was told "it's either this or we have to let you go." Obviously, she chose the former. When I came along, initially as the assistant IT Admin, I immediately took over the bulk of IT-related tasks, while the current Admin concentrated on other duties such as home banking administration, risk assessment, etc. After our annual audit from our audit firm, they recommended that the current Admin be re-assigned to be the Information Security Officer, while I was to become the IT Manager.

It's been about a year since the changeover and it's worked wonderfully. Seeing as how a) I enjoy working with computers and b) I have the time to devote to expanding my knowledge, I feel that our FI has benefited greatly from it.

As I am also a contract IT Auditor for an auditing firm, I've audited several banks, and I have seen a similar trend that you talked about; banking execs who are NOT IT people, but are nonetheless in charge of the network infrastructure. One bank I went to had an IT Admin who was faced with a similar situation as our former admin... she was formerly the proof manager; when the bank started outsourcing the proof/operations, they gave her the choice of managing the network infrastructure or being let go. Not really a "choice" when you think about it. Still other banks I've audited have tremendously bright individuals, but they don't seem to be utilized to their full potential, which I feel is another downfall.

Anyway, there's my two cents. Thanks, Brad!

Gene Blishen · 1 year ago

Excellent post. I agree with Colin, there is real problem when executives don't think about technology from a strategic perspective. Most seem to think it a cost centre and be done with it.
Today I had a discussion with another CU. They pay a minimal yearly renewal fee for their core system and all the tech assets surrounding their banking system have been depreciated. The money they save is phenomenal but they think their current system is deficient so have started to look for something else. Now they are amazed at what they are going to have to pay. But they haven't done any development work or even kept aware of what is necessary for them to accomplish their vision through technology. They could have taken 50 % of their savings and used it in one fashion or another to augment their current system. They didn't even hire an IT person but kept that area bare bones. Now they will pay more than what they assumed they saved. And it all boils down to "Stop being stupid about technology."

George Pasley · 1 year ago

I think it's executives in general, not just banking executives. But that's a topic for another day. It continually amazes me when executives don't get it. I can say that our CEO keeps up on technology. He is constantly forwarding articles to our VP of IT and E-Commerce manager. If only the others were as enlightened. The biggest frustration I've seen is that sometimes, the IT people understand the department functions better than the department heads. Even worse is when they won't listen to IT's ideas because they didn't think of it first. Months later, we see our competitor doing exactly what we suggested.

Dan Dickinson · 1 year ago

Colin, I think you're right when speaking specifically about banks, but I also agree with George...this malady is typical of executives in general. So long as "business" and "technology" are thought of as separate organizational entities, Brad's going to keep writing articles like this.