2. SunGard Moving into the self-service environment
Introduction
Technology consumption in general is transforming the way
companies conduct their operations and manage their
businesses. By 2020, an entire generation — Generation C
(C for “connected”) — will grow up in a primarily digital world,
according to PwC.1
Inarguably, this will transform how people
work, interact with businesses, and consume information.
Increasingly, members of Generation C demand location-
agnostic, virtual workplaces that enable mobility to work
anywhere at any time. And with single sign-on technology,
they have complete access to their files and systems via
whichever mobile device they have in hand — all without
assistance from IT departments — and enjoying a seamless
work experience.
Nowhere is digitalization felt more directly than at banks
and financial services firms. Management teams are nearly
unanimous in agreeing they need to accelerate the
transformation of their working environment and their
customer-engagement model. But despite significant
investments in technology upgrades and replacement of
legacy systems, banks seem unsure just how far along they
are in this transformation.
A recent survey on regulatory change and transformation
in the financial services industry revealed that nearly half
(49 percent) of capital markets businesses are still in the
“assessing and planning” stage of digital transformation, while
an additional 20 percent conceded to having only just begun.2
Regulation of the financial services industry also complicates
the task, as more rules and standards are implemented
almost daily. Adding to the regulatory and typical competitive
pressures, the industry now finds itself in the firing range of
unregulated FinTech disruptors, which see financial services as
a sector ripe for digital disruption, claiming that the industry is
“built mostly on spreadsheets, Rolodexes and phone calls.” 3
Such talk, to a degree, is hyperbole. Few other industries have
spent so heavily on technology. Banking and securities firms’ IT
investments are estimated to have grown 3.6 percent in 2014,
to nearly $480 billion, according to advisory firm Gartner.4
Nonetheless, the industry itself seems uncertain as to
whether it has the infrastructure it really requires for true
digitalization, with 33 percent of recently surveyed firms
saying that a lack of technology was holding back
transformation efforts (see Figure 1).5
Figure 1: What are the main obstacles to business transformation
in your organization?
SOURCE: HTTPS://WWW.KPMG.COM/US/EN/ISSUESANDINSIGHTS/
ARTICLESPUBLICATIONS/DOCUMENTS/KPMG-CAPITALMARKETS-2015.PDF
To be sure, digitalization in the financial services industry is an
all-embracing term. In reality, it encompasses a two-pronged
effort: the external-facing client model and the internal
operational model.
Our focus here is on the challenges facing firms internally
as they seek a digitalized transformation. Some key
challenges include:
Systems: Building location- and device-agnostic systems that
can be accessed anywhere, at any time with a single login
User-friendly experience: Moving to a more streamlined
and consistent experience where employees and managers
are guided through steps to remediate a concern
Automation: Automating business processes to the greatest
degree possible, and integrating exceptions management
Self-service culture: Creating a self-service environment
Documentation: Presenting documentation in a manner that
promotes more valuable interactions with customers and
team members
Centralization: Breaking down the silos between the different
functional areas, and opening up the possibility of more
actionable information and streamlined processes
Collaboration: Fostering greater teamwork by providing social
platforms where employees can share insights and ideas
Flexibility: Providing an on-demand solution that can be
scaled to accommodate business needs
Security: Performing all this in a secure environment fully
compliant with multiple regulatory agencies
1 HTTP://WWW.STRATEGYAND.PWC.COM/GLOBAL/HOME/WHAT-WE-THINK/
DIGITIZATION/MEGATREND
2 HTTP://WWW.KPMG.COM/US/EN/ISSUESANDINSIGHTS/ARTICLESPUBLICATIONS/
DOCUMENTS/FS-REGULATORY-TRANSFORMATION.PDF
3 HTTP://WWW.CRAINSNEWYORK.COM/ARTICLE/20140902/TECHNOLOGY/308319990/
FINTECH-RESHAPES-WALL-STREET
4 HTTP://PFNYC.ORG/WP-CONTENT/UPLOADS/2014/06/NY-FINTECH-REPORT-2014.PDF
5 HTTPS://WWW.KPMG.COM/US/EN/ISSUESANDINSIGHTS/ARTICLESPUBLICATIONS/
DOCUMENTS/KPMG-CAPITALMARKETS-2015.PDF
Unable to quantify metrics of success
Regulatory changes
Prioritizing business transformation
Lack of change management
Lack of technology
29%
31%
33%
33%
29%
3. SunGard Moving into the self-service environment
Building a mobile solution
that suits your organization
In building a mobile solution for your organization, it is critical
to create a technology platform with systems and processes
that are device-agnostic, yet capable of providing access to
data in a flexible user experience. These systems must offer a
single login, the interface must be intuitive and user-friendly,
and it must be consistent with a culture that puts a premium
on self-service.
The technology must be a centralized, seamless solution that
automates and streamlines the user experience, with the goal
of achieving straight-through processing. It must include
accurate and complete documentation, collaborative tools
and social media capabilities where employees can comment,
offer insights and make suggestions. And most importantly,
it must be secure.
As an example, SunGard’s secure cloud-based securities
processing solutions provide firms with flexibility and rich
feature sets that can be scaled according to business needs,
allowing companies to apply IT spend toward mission-critical
growth and revenue-generating efforts.
Conclusion
Digitalization consists of much more than simply installing
new software and hardware to achieve greater efficiencies.
It involves transforming operating models and simplifying
processes to deliver a new level of engagement to meet the
needs of consumers. Cloud-based solutions offer adaptive
enterprises a more agile approach to technology that will
generate greater productivity and acceptance in the
marketplace.
It is important that financial services firms embrace opportunities
for digital technology transformation. Firms that remain
burdened with legacy systems will find it increasingly difficult
to remain relevant to Generation C and stay competitive.
