In today's fast-paced technological landscape, traditional banks are struggling to keep up. Legacy systems and outdated architecture have left banks trailing behind fintech startups and big tech companies. To stay relevant and competitive, banks need to adopt a new mindset, one that is more aligned with tech companies.
Mambu, the SaaS cloud banking platform, offers a solution to help banks transform their core technology gradually. Instead of a complete overhaul of legacy systems, Mambu provides a backbone on which incumbents can create an ecosystem of vendors and in-house talent. This approach allows banks to gradually transition to a more agile and innovative operating model, similar to that of tech companies.
Eugene Danilkis, co-founder of Mambu, spoke to McKinsey about how banks can approach this transformation. According to Danilkis, the first step is to recognize that technology is not just a tool, but a core component of a bank's business. This means that banks need to prioritize technology investments and innovation as much as they prioritize risk management and compliance.
Another key factor is collaboration. Tech companies are known for their ability to work with a wide range of partners and vendors, bringing together the best talent and technology to achieve their goals. Banks need to adopt a similar approach, creating a network of partners and vendors who can help them innovate and stay competitive.
However, collaboration is not just about working with external partners. Banks also need to create a culture of collaboration internally, breaking down silos and encouraging cross-functional teams to work together. This approach can help banks to identify new opportunities and bring innovative products and services to market faster.
Finally, banks need to embrace new technologies and ways of working. This means adopting agile methodologies and using cloud-based platforms like Mambu to enable rapid innovation and experimentation. It also means investing in emerging technologies like artificial intelligence and machine learning to automate processes and improve customer experience.
Helping banks to think like tech companies is essential for their survival in today's digital age. By prioritizing technology investments, collaborating with external partners, breaking down silos, and embracing new technologies, banks can transform their core technology gradually and stay competitive in an ever-evolving marketplace. With the help of platforms like Mambu, banks can create a more agile and innovative operating model that enables them to keep up with the fast pace of change.