Innovation in Banking & Insurance - how to implement it effectively?
Banking and insurance companies are increasingly looking for innovative IT solutions to make them more competitive in the market. However, "innovation" is slowly becoming a trendy and somewhat dangerous word that can expose a company to unnecessary expenses or generate further problems. However, effective implementation is possible if you trust the right outsourcing partner.
What does the banking and insurance industry need?
We can distinguish two basic categories of needs that banking and insurance companies have in the realm of IT solutions. First, companies in the financial sector are interested in maintaining and developing the systems they already have, and in making the best use of data potential. Banks and insurance companies have huge amounts of historical data at their disposal, which can become an excellent source of knowledge for making better business decisions. Therefore, companies in this sector should be particularly concerned about making the most of the infrastructure they already have.
The second major need is to create innovative solutions that will enable the company to stand out from the competition. Key to the effective implementation of IT projects in both categories is an understanding of the business and technological needs of the ordering party. This understanding should exist not only on the side of the company, but also on the side of the IT provider, which offers support in designing, creating and integrating the solution along with its subsequent maintenance.
Problems and constraints in the banking and insurance industry
Companies in the financial sector are primarily hindered by time constraints and an inadequate in-house IT team in the way of dynamic growth and effective implementations. The long lead time of projects, additionally lacking professional support, effectively hinders implementations and halts the company's continuous technological development. The obvious solution here is outsourcing cooperation, this one, however, quite often comes down to expanding the in-house IT team with individual specialists. This way out is not always able to solve the company's problems. This is because it lacks a broader perspective and thinking.
Time constraints combined with market pressures lead to situations where "innovative IT solutions" are the only legitimate option. An interesting issue, however, is the outlook of many companies precisely on innovative solutions. Entrepreneurs are eager to look at and evaluate the possibilities of new systems and technologies, expecting new ones to appear on the market every year. At the same time, however, they do not pay as much attention to the systems they already have and their efficiency.
At Britenet, when we look at the systems of some of our new or potential customers, we can very often see that they are not using 100% of the capacity of their systems, and it even happens that this capacity is only 50-60%. As a company that supports technological development, we assure our partners that they can get even more out of the data they have, and that working on the systems they already have can often bring much greater benefits.
The pursuit of innovation can lead to hasty decisions and choosing solutions that seem attractive "here and now" because they will quickly and inexpensively solve a problem affecting our company. All this, however, without delving into what benefits or problems they will bring in the long term.
If we look at the map of Polish FinTech, there are plenty of companies offering to develop useful tools and systems. Working with a young, dynamic and feisty start-up has its advantages. Such a team offers a fresh perspective, very often based on experience gained while working in the industry - something that a large IT provider can sometimes lack. On the other hand, however, there is a risk that the start-up will approach the solution to the problem in a direct way - locating the source of the problem and then presenting an optimal solution ready for implementation.
This is a tempting option because it provides the company with a quick remedy. However, we know from experience in the numerous projects we have conducted that implementations prepared to solve only one problem offer a very narrow range of improvements. They do not take into account how the implementation will affect the entire chain of systemic relationships used by their client.
Unfortunately, companies usually want to identify their problems too quickly, estimate solutions and implement them. Of course, a quick implementation can be a satisfying answer, but in the bigger picture, solving one problem in this way will create several or even a dozen other smaller problems - these in turn will generate further expenses.
How to solve problems in the banking and insurance industry?
There are several IT solutions that are now an absolute must-have for any company in the banking and insurance industry. These are key solutions that form the basis for enabling, among other things, the full potential of data, better customer service or more effective business decisions. Today, financial companies should rely primarily on solutions based on machine learning. Algorithms using machine learning are extremely effective for banks and insurance companies due to the large amounts of historical data they have.
Another must-have are systems that guarantee safeguards related to RODO, among other things. These are systems that will allow banks and insurance companies to locate and define customers, analyze their needs and expectations, while ensuring the security of their personal data.
Cloud solutions to integrate Data Warehouses with BI analytics are also an attractive direction.
What solutions does Britenet offer?
At Britenet, thanks to many years of interdisciplinary experience in implementing projects for clients from numerous industries, we offer our partners support at every possible stage of project implementation. From the very first discussions with a potential client, we strive to fully understand the needs of both the outsourcer and its customers who will benefit from the implemented solutions or digital products.
That's why Product Design & Development is a strong element in our offering. During meetings and workshops, together with company representatives, we identify the problem, analyze the values to be offered by the system and look for answers to key questions. We then look at what products are available on the market that will enable the greatest benefits or consider what kind of system we could create to meet the company's needs. The next steps involve designing the finished solution and planning the most effective integration with other systems. Often by implementing a single solution, a company can actually contribute to completely unnecessary duplication of costs, so we look at projects from a broader perspective and aim to avoid such risks.
An important issue for Banking & Insurance companies looking for a business partner is the fact that, as a development center, we are able to shoulder the risk and responsibility for creating or integrating the ordered systems. In what we do, we focus on building relationships based on trust and a thorough understanding of our clients' business needs - an approach that has worked well for us for years. For large companies, cooperation with such a partner as Britenet is the most convenient, optimal and cost-effective solution, as we help to plan, design, implement and integrate solutions with all systems, and then we take care of their compatibility and quality of operation.